The curator of the flailing Sizwe Hosmed medical scheme will be replaced, and it will remain fully functional, according to the Council for Medical Schemes, which succeeded in its bid last week to replace Lebogang Mpakati with Ian Fleming.
The move follows a High Court order handed down on Wednesday, reports Business Day.
Mpakati, who faces a provisional sequestration order regarding her previous work as a business rescue practitioner, has now been given 30 days to hand over all the information she has about the scheme to Fleming and provide a final report to the CMS.
“The regulatory measures applied to Sizwe Medical Scheme are part of our proactive oversight framework and are designed to strengthen, not disrupt, its operations. Members can be assured that the scheme remains stable and capable of meeting its obligations,” said CMS registrar Musa Gumede.
The CMS took legal action to place Sizwe Hosmed under curatorship last year after attempts to stabilise its finances with statutory management failed.
It launched an urgent High Court application this month to cancel Mpakati’s appointment as curator, citing concerns about a judgment handed down in December granting a provisional liquidation order against her business and a provisional sequestration order against her estate.
That judgment stemmed from a dispute over R2.3m in fees paid to Mpakati when she was appointed as the business rescue practitioner for Catai Logistics several years ago.
On Wednesday, the Gauteng High Court (Pretoria) handed down an order confirming an agreement between the former chair of Sizwe Hosmed’s board of trustees, Luyolo Makwabe, CMS registrar Musa Gumede and Sizwe Hosmed’s former trustees, terminating Mpakati’s curatorship and appointing Fleming with immediate effect.
The former board of trustees has also withdrawn its application to have the curatorship lifted.
Fleming was previously the curator of Thebemed Medical Scheme.
In a statement, Mpakati said Sizwe Hosmed had stabilised materially, improving its solvency ratio from about 5% at the start of her curatorship to 30%.
“Governance controls have been strengthened, operational oversight enhanced, and financial discipline restored, placing the scheme on a significantly firmer footing,” she said.
See more in MedicalBrief archives:
Sizwe Hosmed now under fire from CMS
CMS fails to place medical fund under curatorship
Sizwe Hosmed in financial trouble as other schemes hike prices