Joburg hospitals downplay service effects after Egoli Gas cuts supply over ‘contractual dispute’

4 Mar 2025

Charlotte Maxeke and Rahima Moosa hospitals in Johannesburg have set up temporary measures to cook patients’ meals and sterilise equipment after a payment dispute led to Egoli Gas cutting off supply.

The Gauteng Department of Health admits its ongoing contractual dispute with Egoli Gas has affected health services, but says it hasn’t brought them to a halt.

The contractual dispute has led to Egoli Gas cutting services to both the Rahima Moosa Mother and Child Hospital and the Charlotte Maxeke Academic Hospital in Johannesburg.

Charlotte Maxeke is a cornerstone of the province’s health system due to its central location, and Rahima Moosa Hospital, also in Johannesburg, serves women and children.

“Gas is needed at the hospitals to assist with hot water for patients, cooking on gas stoves and the sterilisation of instruments,” said the DA’s Jack Bloom in a statement on 4 March.

“At [Charlotte Maxeke], this means patients are now being fed cereal instead of porridge,” said Bloom.

“This is yet another example of the department’s abysmal mismanagement as it faces a deficit of more than R7.3-billion in the financial year that ends on 31 March,” he added.

“They are generally indebted to many major service providers, and every year they run up a large deficit which they have to pay from the next financial year budget.”

“They need to explain why they are not paying Egoli gas, which is shameful and disrupts the normal operation of the hospitals which are forced to take non-ideal mitigation measures,” Bloom said.

Read more: Gauteng health department faces growing scrutiny amid leadership crisis and damning auditor-general’s report

Temporary measures

“Services at the hospitals have been impacted, not halted,” Gauteng Department of Health spokesperson Motalatale Modiba said.

“The matter of Egoli Gas is receiving the necessary attention to address the contractual dispute.”

While the provincial department admitted to disruptions, it said gas cylinders were being used for tasks such as cooking in the absence of a central gas supply.

“Rahima Moosa Mother and Child Hospital has electric autoclaves [for sterilisation] in addition to the gas autoclave so this mitigates any disruption to autoclaving,” Modiba said.

The department also downplayed the impact at the Charlotte Maxeke Academic Hospital.

“At Charlotte Maxeke Johannesburg Academic Hospital, the cut-off has only affected the domestic hot water supply to the hospital and the sterilisation of medical equipment.

“However, the hospital continues to operate as normal. In the main, the hospital will supply quick-freeze food to patients and use nearby facilities to sterilise medical equipment,” Modiba said.

Supply restored

On 5 March 2025, Egoli Gas said that following engagements with the Gauteng Department of Health, it had agreed to restore gas supply to Rahima Moosa and Charllotte Maxeke hospitals.

“This follows a written commitment by the GDoH to pay the outstanding amount owed to Egoli Gas while its finance team finalises validation of remaining invoices,” said the gas utility in a statement.

“Furthermore, the two parties have agreed to develop a structured payment plan to settle the outstanding debt while also exploring long-term arrangements with clear payment terms and commitments.

“Egoli Gas and the GDoH are optimistic that ongoing discussions will lead to a lasting resolution that balances the urgent needs of the healthcare sector with the financial sustainability required to maintain an uninterrupted gas supply.” DM

This article was updated on 11 March 2025 to include the resolution reached between Egoli Gas and the Gauteng Department of Health.

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Temporary measures