Guiding consumers since 2009

Sizwe goes under provisional curatorship

By Staff Writer

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.

Recent Articles

Featured Ensure your family doesn’t feel the impact of your retrenchment

Retrenchment doesn’t only change the way you view yourself; it also alters the relationship between you and your family. Things can go from good to bad within a short space of time. But you can do something to prevent your family from feeling the impact of retrenchment.

Someone got injured on my property – now what?

Life is unpredictable and no matter how careful we are, accidents happen. But what if someone has an accident while visiting your house? Your guest could fall off the stairs, slip on the floor or get bitten by your dog. 

Are you ready for a house upgrade?

You moved into your home knowing one day you would need to make some changes to turn it into your dream home - add a new bedroom, a second bathroom, build a double storey or even move out.

How income protection can help you when you’re sick

Your greatest asset is probably your ability to earn an income, which provides a certain lifestyle and the capacity to take care of your dependants. That’s why it’s so important to protect your income against unforeseen illness or injury and to provide for your dependents after your death.

Deals

Baby Boom Toy Specials

Price: Available on request
When: Daily
Where: Online

Readers’ Warehouse Book Bundle Deals

Price: From R40
When: While stocks last
Where: Online

Bidorbuy Crazy Wednesdays

Price: From R1
When: Daily
Where: Online


Latest Guide

Complete guide on personal income tax