One of South Africa’s largest medical schemes, Sizwe Medical Fund, has been placed under curatorship by the North Gauteng High Court, following the successful application of the Council of Medical Schemes (CMS) to address governance concerns at the scheme.
According to media reports the fund was placed under curatorship this week after it emerged that its principal officer had not finished school and that there were financial irregularities and fraud in the election of its trustees.
The CMS has assured that the fund itself is financially healthy and that the claims-paying abilities of the scheme are not affected by the provisional curatorship. The last financial statements as of 31 December 2011 reflect a solvency ratio of 27%, which is above the prescribed 25% solvency ratio. The Sizwe medical fund was formed in 1978 and to date has 156,000 beneficiaries.
“The provisional curatorship has nothing to do with the financial soundness of the scheme,” said Dr Monwabisi Gantsho, registrar of Medical Schemes and chief executive of the Council. “There are no concerns whatsoever over the financial position of the scheme.”
However, the CMS warned brokers to act with restraint, adding: “Any advice they give must accord with the principles of best advice, have the best interests of your clients at heart, and be based on a proper assessment of the situation.”
The court has appointed Marshal Gobinca as provisional curator of the Sizwe Medical Fund. The CMS said he will replace the current Board of Trustees and must ensure that a new Board takes over the reins of Sizwe in due course, one that is fit and proper to run the affairs of the scheme.
“In my curatorship capacity, I will be addressing the governance concerns in the management of the scheme affairs. There is a need to implement governance structures and procedures to protect the interests of the beneficiaries of the scheme, and in so doing, also prevent any potential negative impact of the fund,” said Gobinca in a statement.
Sizwe goes under provisional curatorship
Recent Articles
Featured Local elections, international uncertainty: How will the rand respond?
As we dust off the Easter Holiday cobwebs, we enter the business end of the local election. This brings about a lot of local noise which could increase volatility in the rand. The market will look at any headline news which could lend short-term momentum to the rand after a period of range-bound trading.
Read moreHow does Tyme bank compare to traditional banks?
The South African banking industry is slowly moving into the digital space. In 2001, Capitec Bank opened its doors, changing the way banking had traditionally been done, ensuring that customers can access their accounts digitally.
Read moreYoung professional? Here is the best bank for you
If you’re under 35, have a four-year degree, and you’re looking to take your banking experience to the next level, you may be considering young professional banking products.
Read moreComparison of Gold Credit Cards offered at top South African banks
Nowadays banks are less particular about the colour of the cards they offer. However, they still name their cards based on the original colours. This week Justmoney found out how gold credit cards compare with one another.
Read moreSign Up
To our weekly newsletter for advice you can bank on
Deals
KFC Burger Special
Price: R60
When: Daily
Where: Nationwide
Amani Spa and Wellness Special
Price: From R380 to R1,200
When: Daily
Where: Cape Town and Johannesburg
Metropolitan Actuarial Bursary
Price: Free
When: Daily
Where: Nationwide
Our suppliers and companies we review
