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Friday, February 25, 2005 - Web posted at 8:22:49 GMT

Spiralling AIDS costs hit Govt

LINDSAY DENTLINGER

THE soaring cost to the State of providing anti-retroviral treatment for HIV-AIDS to civil servants hit home yesterday, with Finance Minister Saara Kuugongelwa-Amadhila asking parliament to urgently approve N$65 million to keep Government's medical aid scheme afloat.

Because of the increasing number of members, and more of them starting treatment, the medical aid costs have increased by more than N$123 million over the past year.

"We are now experiencing some of the financial pains that this dreadful disease is causing.

"The expenses of HIV-AIDS medication have increased at rates beyond anticipated levels," Kuugongelwa-Amadhila told the National Assembly yesterday.

"The HIV-AIDS pandemic has reached proportions which make it a development issue and which therefore requires a comprehensive approach," she noted.

The Public Service Employees' Medical Aid Scheme provides 95 per cent cover for treatment of HIV-AIDS.

One-fifth of Namibia's population is now infected with the virus.

Not only is the medical scheme faced with the high costs of the drugs, but with more members joining the scheme and requiring treatment.

Since the beginning of this financial year the number of members has grown by more than 2 000 members to 60 270, while the number of dependants has consequently increased by 7 422 to 70 379.

Kuugongelwa-Amadhila said some of the medical aid's expenses were plugged with internal savings, but an extra N$65 million was needed to carry it through until the next financial year.

"We are currently experiencing a situation where the appropriated funds for the Government Medical Aid Scheme are already depleted," she said.

Kuugongelwa-Amadhila said she had already authorised the withdrawal of the needed funds from the revenue account to prevent any possible halting of medication or treatment for any patient.

This she did through a provision in the State Finance Act which allows the Finance Minister to withdraw funds from revenue which were not appropriated for, to defray expenditure on a service of an urgent nature.

The Finance Minister is then obliged to approach Parliament within the next financial year to approve the appropriation.

Anti-retroviral treatment is now available at 19 of the state's 35 hospitals, while treatment to prevent mother-to-child transmission has been rolled out at 25 of these.

The Minister garnered immediate support from the two main opposition parties.

The Congress of Democrats' Tsudao Gurirab praised Kuugongelwa-Amadhila for the tight controls she has exercised over the budget and commended Government for taking the lead in addressing the HIV-AIDS pandemic.

Gurirab said the pandemic had become a "primary development challenge for the country."

The DTA's McHenry Venaani said he was "greatly moved" that the Minister took the step to spend the money in this way.

Both parties agreed that because of the urgency of the matter they would speed up debate on the item to allow it to pass in the shortest amount of time.

They will sit on Monday afternoon, out of their ordinary schedule, to discuss the appropriation.

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