Northdale Hospital in Pietermaritzburg is under forensic investigation after Msunduzi Municipality revealed that the institution’s municipal account is more than R12 million in arrears.
The hospital became the latest organisation targeted in the municipality’s intensified revenue collection campaign, known as Operation Qoqimali, which is designed to enforce the city’s Credit Control and Debt Collection Policy and improve revenue recovery.
Municipal officials visited the healthcare facility on Monday, where hospital management submitted supporting documents and proof of payments in an effort to clarify the outstanding balance.
Municipality Launches Forensic Investigation Into Northdale Hospital Account
Msunduzi Municipality spokesperson Ntobeko Mkhize said the payments presented by the hospital were not reflected on the municipality’s billing system at the time of the engagement.
“However, at the time of engagement, the payments in question were not reflecting on the municipality’s billing system, necessitating further verification and reconciliation processes.”
“Given the seriousness of the matter and the need to protect the integrity of municipal financial systems, the matter has since been referred for forensic investigation and internal verification processes to establish the status, allocation, and authenticity of the payments presented,” she said.
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According to Mkhize, municipal records indicate that Northdale Hospital remains in arrears by more than R12 million, although the amount is still being reconciled.
“The municipality wishes to emphasise that the matter is being treated with the utmost urgency and that relevant departments are actively undertaking detailed verification processes, including account reconciliation and payment allocation reviews.”
Mkhize confirmed that the hospital had received formal notice in accordance with municipal procedures, but discussions with management are continuing in an attempt to settle the matter administratively.
“The municipality can further confirm that notice was issued in line with applicable municipal processes. However, engagements between the municipality and hospital management remain ongoing with the intention of resolving the matter administratively while due processes continue,” said Mkhize.
KwaZulu-Natal Health Department Responds To Municipal Debt Claims
KwaZulu-Natal Department of Health spokesperson Ntokozo Maphisa said the department is examining the issue and maintains that, based on current information, no unpaid electricity charges are owed to the municipality.
“To the best of our knowledge, there are no outstanding electricity utility payments owed to Msunduzi Municipality. We will, however, engage with the municipality to establish the facts surrounding the matter,” he said.
Government Departments Owe Msunduzi Municipality R319 Million
The dispute comes as Msunduzi Municipality continues to grapple with substantial unpaid accounts from state institutions.
According to Mkhize, government departments and public institutions collectively owe the municipality around R319 million.
“The continued non-payment of municipal accounts places significant strain on the Municipality’s ability to maintain infrastructure, deliver services and meet its operational obligations to residents and businesses across the city,” said Mkhize.
