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Support from the ministers of Finance and Health

Support from the ministers of Finance and Health

(Letter dated 13 December 2013)

Operating expenses for the Nelson Mandela Children’s Hospital

We would like to confirm arrangements for operating expenses of Nelson Mandela Children’s Hospital.

Our understanding has always been that the late former President Nelson Mandela raised funds for the Capital Projects, but the operating expenses will be budgeted for through the normal budgeting processes of the Department of Health.

This position has not changed since it was conveyed to the late former President Nelson Mandela at the sod-turning ceremony by the late Deputy Minister of Health, Dr Molefi Sefularo who represented the government at the event. What he conveyed represented the official positions of the government.

The normal government multi-year and intergovernmental budgeting procedures will be followed and will start in the 2015/16 financial year.

The exact cost, procedure and services will be specified in the Service Level Agreement that will, on mutually agreed terms and conditions, be entered into by the parties. This will include agreeing with the province on how much of the cost will be covered from its own revenue.

To ensure accountability for this partnership, government will nominate individuals who will represent National Treasury and the Department of Health on the governance structure of the Nelson Mandela Children’s Hospital.

Yours faithfully

DR P. A. MOTSOALEDI
Minister of Health

MR P. J. GORDHAN
Minister of Finance