The Council of Medical Schemes has stepped in to halt the proposed merger of black-owned Sizwe Medical Aid and Hosmed Medical Scheme, in what may be a serious blow to the much-needed transformation of the sector.
Kabane’s intervention was criticised by sources in the schemes and the council, who accused him of not following proper procedures. “The registrar is asking the schemes to agree to an unlawful step,” the one CMS source said. “There is no provision for suspension of an amalgamation in the Medical Schemes Act.
He also said there was an issue with the trustees’ remuneration for training, travel and accommodation and that telephone and other costs “cannot be fully reconciled to the return”. “The scheme is requested to prepare and submit a new set of … statements to the CMS. Any previous copies issued must be retracted.”
Kabane refused to confirm whether he wrote the suspension letter, saying the scheme wrote many letters to both parties. When given a date of the letter concerned so that he could check his records, he declined to do so. “Then at the end of the process we suddenly get an email saying we need to halt everything without a single reason why.