The Indian Padiyath Health Care Sarl will no longer manage the Cinquantenaire Hospital in Kinshasa, Democratic Republic of Congo (DRC). The Ministry of Health announced the immediate termination of the partnership between the firm and the State last week, October 23.
In its statement, the Ministry informed that a "six months' notice of termination has been given." During this time, "an accompanying committee will oversee the transition to ensure management by the government." Without further details on what will follow, the Ministry indicated that this committee would help maintain services.
The Ministry noted that the termination was decided after "a thorough assessment, revealing serious shortcomings". Reasons for the termination included Padiyath Health Care’s failure to provide a $40 million contribution, not returning 5% of revenue, not making planned investments, not following accounting standards, and missing annual reports.
Padiyath Health Care has not publicly responded to these claims. However, a July 28, 2016 article from 7sur7 stated, without evidence, that the company "has indeed fulfilled its commitments by providing Cinquantenaire Hospital with quality medical equipment worth around $40 million." The article also criticized the government for not meeting its obligations, particularly regarding its annual $5 million contribution.
The contract between the Congolese government and Padiyath Health Care was signed in 2013 but has not been made public and is not listed in the current public-private partnership projects in the 2025 Finance Bill. This makes it hard to confirm each party's commitments.
When the contract was inked, the media had reported that the contract was for 25 years and included technical assessments every five years to address any issues. It was also indicated that either party could terminate the contract if they felt the other was not meeting its obligations. It is unclear if these assessments have taken place.
The DRC acknowledges that public-private partnerships (PPPs) are challenging. To manage budget risks associated with these contracts, the government is considering measures such as finalizing an inventory of PPP projects, improving project preparation and structuring, and publishing contracts for analysis of their financial impact on the state budget. The government also aims to establish PPP contracts that protect public finances and enhance the capacity of stakeholders involved in budget risk analysis.
Pierre Mukoko
