Dear Stakeholders

We hereby regret to inform you that electricity services at our Clinix Solomon Stix Morewa facility in Selby, Johannesburg has been disconnected by City of Johannesburg (COJ). The COJ has taken this action at the backdrop of a rate dispute. Clinix Health Group (CHG)’s position is that the proposed rates are based on an incorrect valuation by COJ. Management from both sides has been discussing and seeking to resolve this dispute in an amicable manner.

Clinix filed an Appeal against the valuation in 2019. However, to date, the COJ is yet to make a finding on the Appeal.

We have a total of over 400 mental health and rehabilitation patients in our care at this facility and their safety and wellbeing is our ultimate priority. The decision by COJ to unilaterally disconnect services during negotiations and in circumstances where an Appeal has been pending for at least two years is unfortunate and will have dire consequences on the delivery of quality care to these patients.

The management of Clinix Health Group remains committed to engage with the City’s Management, is seeking urgent advice and will ensure that the matter is resolved with the urgency it deserves.

Regards
Clinix Health Group Management