The GNU (Government of National Unity) has been hit by its first significant cabinet clash, with ANC and DA ministers at odds over proposed spending plans. The most contentious issue at the centre of the debate is the National Health Insurance (NHI), a plan to reshape South Africa’s healthcare system. Insiders reported that tempers flared during an extended cabinet meeting on Friday, marking a heated exchange between members.
Medical aids on the chopping block?
A significant point of contention was a target in the medium-term development plan (MTDP) to phase out medical aids by 2029. The MTDP is a crucial five-year roadmap outlining key interventions by the GNU. The proposed elimination of medical aids sparked outrage, particularly from DA ministers, who expressed strong opposition. A government insider revealed that the DA ministers feel scrapping medical aids is “unrealistic and detrimental to the country”.
Health Minister Aaron Motsoaledi, a key advocate for NHI, reportedly lost his temper during the meeting when DA ministers objected to the MTDP’s provisions on medical aids. Motsoaledi tried to frame the issue as a rich-versus-poor debate. Others pushed back, pointing out that many public servants rely on medical aids and are not wealthy. Motsoaledi had to be called to order by his colleagues during the heated exchange.
DA ministers oppose NHI funding provisions
DA ministers raised concerns not just about the phasing out of medical aids but also about the funding model for NHI. The DA has consistently opposed the NHI, arguing that it will place an unsustainable burden on the country’s economy.
Finance Minister Enoch Godongwana said that the MTDP’s referral back to cabinet clusters for further discussion would not impact his upcoming mid-term budget, which is scheduled for later this month.
President Cyril Ramaphosa and Deputy President Paul Mashatile were forced to step in to mediate and calm the situation. They proposed that the MTDP be returned to cabinet clusters for further refinement, ensuring that any NHI-related disagreements are resolved through the GNU’s dispute resolution mechanism.