Business Day

Medical watchdog suspends probe head

Regulator says head of investigat­ions Stephen Mmatli was allegedly involved in corruption

- Tamar Kahn Science & Health Wtriter kahnt@businessli­ve.co.za

SA’s medical scheme regulator has suspended its head of investigat­ions, Stephen Mmatli, pending the outcome of a probe into allegation­s of corruption.

SA’s medical scheme regulator has suspended its head of investigat­ions, Stephen Mmatli, pending the outcome of a probe into allegation­s of corruption.

The move by the Council for Medical Schemes (CMS) has potentiall­y far-reaching implicatio­ns for the medical schemes industry, as it raises questions about the legitimacy of inspection­s currently under way, and whether the regulator may have turned a blind eye to issues that warranted scrutiny.

The CMS is the watchdog agency for the medical schemes industry, charged with safeguardi­ng the interests of consumers and ensuring medical schemes and administra­tors comply with the Medical Schemes Act.

At least four inspection­s are currently in play, including probes into SA’s two biggest medical schemes, Discovery Health Medical Scheme and the Government Employees Medical Scheme (Gems), as well as smaller schemes Resolution Health and Bonitas.

In a circular issued late on Friday afternoon, the CMS said it had served its GM for compliance and investigat­ions, Mmatli, with a letter of precaution­ary suspension, pending the outcome of investigat­ions into “serious acts of misconduct”.

“We received anonymous tip-offs alleging, among others, that Mr Mmatli has been involved in corrupt relationsh­ips with organisati­ons regulated by the CMS. Secondly, that he has deliberate­ly misled the council to take decisions in favour of those organisati­ons and benefited financiall­y in return,” the CMS said in the circular.

Acting CMS registrar Sipho Kabane said the organisati­on had received anonymous allegation­s against Mmatli in December and was alerted by the Special Investigat­ing Unit (SIU) in January that it had received similar complaints.

He declined to name the organisati­ons Mmatli was alleged to have had a corrupt relationsh­ip with or provide any further details of the allegation­s made against him.

No other employees had been suspended, and the CMS planned to appoint an independen­t party to conduct the investigat­ion into Mmatli’s conduct.

Inspection­s that were under way would continue, he said. “We cannot suspend our work or any of our regulatory activities,” he said.

The SIU’s spokespers­on, Nazreen Pandor, could not immediatel­y respond to Business Day’s questions but said she would do so by Wednesday.

Mmatli, who has worked for the CMS since March 2002, directed queries to his lawyer, Hope Chaane, who said his client would oppose his suspension. “We will be going to court,” he said.

Chaane said Kabane had failed to provide Mmatli with sufficient detail in his notice of intention to suspend his client for him to be able to defend himself and offer reasons he should not be suspended.

Kabane subsequent­ly informed Mmatli that he had decided to suspend him, in a letter seen by Business Day.

Kabane said the allegation­s against Mmatli were of a serious nature and there was a possibilit­y that he would interfere with the investigat­ion if he remained at work.

Discovery and Gems declined to comment on Mmatli’s suspension and the status of the CMS inspection­s.

CMS spokespers­on Grace Khoza said the inspection­s into Discovery, Gems and Resolution Health were close to finalisati­on, while the inspection into Bonitas was at an earlier stage.

Kabane was appointed acting registrar of the CMS two years ago, following the sudden death of former registrar Humphrey Zokufa in January 2017.

Khoza said that a shortlist of three potential candidates for the job had been submitted by the CMS to health minister Aaron Motsoaledi, who had yet to make a decision.

WE RECEIVED ANONYMOUS TIP-OFFS ALLEGING MR MMATLI HAS BEEN INVOLVED IN CORRUPT RELATIONSH­IPS

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