Stan Moloabi, principal officer of the Government Employees Medical Scheme (GEMS), has been put on precautionary suspension, pending “the completion of an internal administrative process”, with COO Vuyo Gqola being appointed as acting principal officer in the meantime, reports TimesLIVE.
The GEMS board on Tuesday said the suspension was not related to the scheme’s financial position, reserves or solvency, nor was it related to any stakeholder or union demands.
The scheme has been under continue pressure from unions after the scale of its contribution hikes, initially set at a weighted average of 9.8% but lowered to 9.5%, effective from 1 April.
In May, the announcement of a further increase slash down to 7.5% from 1 July was vetoed by the Council for Medical Schemes, which said this would jeopardise the scheme’s financial stability.
The board said it had a fiduciary responsibility to ensure the scheme’s governance processes were applied consistently, fairly and without prejudice.
“The decision to place the principal officer on precautionary suspension is an interim measure that enables the appropriate internal processes to unfold with integrity and independence. It should not be construed as a finding of misconduct or wrongdoing,” it said.
TimesLIVE article – Board suspends Gems head Stan Moloabi (Restricted access)
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