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BusinessLive reports that Community Medical Scheme has been placed under provisional curatorship by the High Court in Pretoria after the Council for Medical Schemes (CMS) discovered alleged governance failings by its board.
The council approached the high court urgently and last Friday it appointed a provisional curator, pending the outcome of a hearing on 4 August. The apparent failures in fiduciary oversight include allowing a R1.1m bonus to be paid to the scheme’s principal officer, which was outside the scope of her employment contract, and allowing illegal advance payments to the scheme’s administrator Allcare to go ahead. Community Medical Scheme had 13,109 beneficiaries at the end of 2016. The CMS’s head of legal services said members should rest assured that it was "business as usual" for the scheme, which had sufficient funds to cover their medical bills.
- Read this report by Tamar Kahn in full at BusinessLive
Get other news reports at the SA Labour News home page