The National Health Insurance (NHI) is a topic of intense debate, but addressing factual inaccuracies is crucial. Such inaccuracies create doubts about the government’s ability to effectively implement statutory Schedule 3 Public Entities, of which NHI is one. I will describe this later.
To begin with, the NHI will be classified as a Schedule 3 Public Entity, similar to other reputable entities such as the Council for Scientific and Industrial Research, the Council of Geoscience, the Medical Research Council and the Agricultural Research Council. These have a proven track record of unqualified audits, and the NHI is expected to operate similarly.
According to National Treasury, Schedule 3 entities are mandated to fulfil the government’s specific economic or social responsibilities. They rely on government funding and have limited autonomy. This distinguishes them from Schedule 2 State-Owned Enterprises, such as Eskom and Denel, which are profit-driven and operate more independently. Therefore, comparing the NHI to Schedule 2 entities is flawed……more