Some 500 retrenched Life Healthcare Group employees are crying foul, accusing the healthcare company and the Gauteng Department of Social Development of using them to play politics at their expense and that of the patients.

This comes after Life Nkanyisa, a subsidiary of the Life Healthcare Group, laid off hundreds of staff at the company’s Witpoort Recovery Centre and the Life Nkanyisa Randfontein Recovery Centre. It cited tough budget negotiations with the Gauteng Department of Social Development.

Earlier this year, the company ordered about 1,000 recovery patients to stay home, saying they were now surplus to requirement due to budget constraints. 

A former employee, who could not be named for fear of victimisation, said the closure of the facilities could have easily been avoided. But the “narcissistic egos of the department and health group” are putting affected staff in depression as they think about property bonds and vehicle installments. 

“It started as a rumour. There were rumours that the Department of Social Development did not want to fund Nkanyisa anymore. There was a time when NGOs were striking due to non-payments of funds from the department. Even our employer was not getting funding but we survived because the company was paying us from its pockets.”

“Remember, the company has a big budget as a group, so they managed to push despite the department not funding them. It was confirmed in July that Nkanyisa is shutting down. At that time, the department did not want to pay anything,” a former Life Nkanyisa employee said. 

 “But it came to a point, I think around August, when our union told us that the department was interested in funding the facility but also wanted to take over Life Nkanyisa. The department wanted Life Nkanyisa to lease the building to them. Our company showed no interest in that. Even in September, our union came back again to confirm that the department did not want the closure of the facility, but at the same time, they did not want a joint venture but a full takeover.” 

The source said Life Nkanyisa did not help matters by refusing to budge. 

“Our company never agreed to that. According to our union, had the company agreed to lease the building, the department was going to absorb all of us as well. That was when they did not reach the agreement. Initially the department did not want to fund the facilities, but at some point, it wanted to lease the building and take over,” he added. 

While many disgruntled former employees blame the department, accusing it of being careless, others say Life Nkanyisa is eyeing a big cheque from the Gauteng Department of Health.

“Remember that buildings were renovated, which means Life Health Group is planning to start a new business. It may be psychiatric because currently, they are rendering services to the Department of Health. The views of many people were that Nkanyisa wanted to continue with psychiatric services with Health. That is why they do not have a problem with the closure of the facility. They know they can still get business from Health. They may want to expand the Waverly Care Centre in Germiston,” a source said.

A mother of two children, aged 10 and 13 years old and in private schools, has expressed dismay at the department, saying she has been left stranded and does not know what to do ahead of next year.

“I am disappointed and angry because I believe we were failed by the system. This whole thing could have been avoided. People did not care about the repercussions of closing the facility. As a social worker, it kills me. Not to mention the fact that breadwinners have lost income. I was a line manager; I hired people as early as this year. A person was happy they have got the job and can now provide for families. Five months later, you are then told sorry, we are retrenching. In my eyes, that is evil,” said a former Life Nkanyisa manager. 

“When you are unemployed, you need to count each cent that you have. I have not yet decided the future of my children regarding the schools because it will pain me to take them out of where they are. It is every parent’s wish to send their children to the best schools. Currently, they are in private schools. I do not know what will happen next year because now I am retrenched. Nobody cares that people have recently bought houses and cars. It is very disturbing and disgusting.”

The former manager said the Gauteng Department of Social Development was to blame for the retrenchments.  

“They are the ones to blame. I am saying this because of the way the organisation was operating as early as last year. We were asked by the department to increase the capacity of patients. So, if you have no plans to continue with the programme, why would you put us through that? Why would you put us through the process of recruiting new members? Renovating the building and all that, knowing very well that you cannot afford to continue.”

“The department did not pay for the 2023/24 budget. Life Group ran the facility from their own pocket, paying the salaries and everything else. They could not do that for two consecutive years. They would be operating at a loss. I am angry at the company because now I am jobless. Life Healthcare could absorb us, especially social workers, because they are a nursing company,” she added.

The Gauteng Department of Social Development official in Krugersdorp, only known as Mkateko, the inspector at the Randfontein Recovery Centre, denied that they failed the Life Nkanyisa employees.

She rejected claims that she was guilty of dereliction of duty by asking the company to expand while fully knowing that the department had no intention of funding the facility moving forward. 

“I have no comment. I am not comfortable to comment on this matter. Please contact the provincial department,” Mkateko said. 

Attempts to get a comment from the Gauteng Department of Social Development drew a blank.