News Article : Regulator wants curator for Sizwe Medical Fund
|Category:|| Healthcare Insurance : Medical Schemes|
|Author:||Edited by ITInews|
|Posted:||08 Dec 2010|
Investigation points to material irregularities
The Registrar of Medical Schemes on Monday asked the South Gauteng High Court in Johannesburg to place Sizwe Medical Fund under curatorship. The case number is 49503/2010.
The application was done in terms of Section 56 of the Medical Schemes Act 131 of 1998.
“Everything we do is aimed at serving the best interests of beneficiaries,” said the Registrar of Medical Schemes, Dr Monwabisi Gantsho, today.
“We would like to assure all the beneficiaries of Sizwe as well as all service providers that the curatorship application has nothing to do with the financial soundness of the scheme."
"Sizwe is perfectly capable of honouring its claims going forward. The curatorship, if granted, is meant to address governance concerns within the scheme.”
Sizwe is an open medical scheme with more than 160 000 beneficiaries. The CMS decided that a curatorship would be the best way forward after conducting an investigation into the scheme.
One of the allegations being leveled against the scheme is that it has been operating an unregistered benefit option; it has also allegedly failed to pay in full for prescribed minimum benefits (PMBs), as required by the Medical Schemes Act.
But the main concern is its governance, specifically the fitness and propriety of some of its officers. An investigation conducted by the CMS points to material irregularities.