BL Premium reports that the regulator of the R160bn medical schemes industry has suspended five senior officials pending the outcome of an investigation into alleged corruption and unethical conduct, and will subject all its executives to lifestyle audits.
The latest developments come hard on the heels of a series of events that have rocked the Council for Medical Schemes (CMS), the watchdog agency charged with safeguarding the interests of about 9-million consumers and ensuring medical schemes, brokers and administrators comply with the Medical Schemes Act. The suspensions follow the resignation earlier this week of head of compliance and investigations Stephen Mmatli, who was suspended in February pending the outcome of an investigation into alleged corruption, and against the backdrop of a probe into the CMS by the Special Investigating Unit for maladministration and corruption. The suspensions raise fresh questions about the legitimacy of inspections currently under way, recent decisions to place schemes under curatorship, and whether the regulator may have turned a blind eye to issues that warranted scrutiny. The CMS issued a statement on Wednesday saying two executives and three senior managers had been suspended, but did not name them. Apparently, the two executives are CFO Daniel Lehutjo and head of legal services Craig Burton-Durham.
- Read the full original of the report in the above regard by Tamar Kahn at BusinessLive (paywall access only)
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