30 November 2004
Litigation by the Treatment Action Campaign (TAC) around the provision of antiretroviral drugs has led to the Department of Health losing more than R5 million in legal cost since 2001, the Department said in an answer to a parliamentary question presented in the National Assembly today.
Much of the costs were accumulated when the TAC took the Department of Health to court demanding that nevirapine be provided at facilities outside of the selected sites for government research programme to reduce the risk of mother to child transmission of HIV. The court case dragged from 2001 to 2003.
The TAC lodged a court action against the Minister of Health, Dr Manto Tshabalala-Msimang and former MEC for Health in Mpumalanga, Sibongile Manana arguing that they were not complying with the court ruling on nevirapine and should therefore be held in contempt of court. This matter was never pursed further by the TAC after the Department filed its papers which involves cost of consulting counsel.
The figure presented to parliament excludes cost on the matter that is pending before the Pretoria High Court where TAC is demanding that the Department pays for the legal cost incurred by the organization while seeking access to a document, which is not an official document of the Department.
TAC indicated that it would no longer persist to have access to annexures to the Comprehensive Plan for Management, Care and Treatment of HIV and AIDS as it had originally intended. However, the organization insists that the Department uses taxpayers' money to compensate it (TAC) for the legal cost incurred while pursuing access to the document through the Public Access to Information Act
The organisation has, thus far, not stated publicly how much money it is demanding from the Department of Health on this matter. The Pretoria High Court reserved its judgement when the matter was heard in November 04, 2004.
It is regrettable that the limited resources earmarked for improving health of all South Africans including people living with HIV and AIDS have to be spent in resolving legal disputes lodged by the TAC.
In its answer to parliament, the Department further reported that R1,3 million has been spent on litigation concerning the pricing regulations so far. New Clicks and Pharmaceutical Society of South Africa took the Department of Health to court challenging the regulations aimed at reducing the high cost of medicine in the country.
The Cape High Court found that there was nothing wrong with the regulations in particular the process followed in finalizing them. The applicants applied for leave to appeal. Before the Cape High Court could pronounce its decision on the request for a leave to appeal, applicants approached the Supreme Court of Appeal. The matter is being heard at the Supreme Court of Appeal in Bloemfontein today.
The Department will argue that the Supreme Court of Appeal has no jurisdiction to hear the matter that is pending in the High Court.
A recent study comparing the ex-manufacturer price of medicine before and after the pricing regulations reported that generic drugs had been reduced by 30% and patented medicines by 15%. The average reduction for all medicines was 19%, which is estimated to be an annual saving of R2.3 million.
Unfortunately, the consumer has not seen this saving largely because retail pharmacies have decided not to embrace the spirit of the regulations. Many retail pharmacists are acting contrary to the spirit of the regulations by charging additional fees that cannot be explained and justified. The Department is looking at ways to prevent this practice from continuing.
Issued by Department of Health
Contact: Sibani Mngadi (Spokesperson for the Department of Health) @ 0827720161