Municipal workers’ medical scheme ‘on a sound footing’

THE officials in control of the SA Municipal Workers Union Medical Aid scheme (Samwumed) have assured its members that it is operating on a “sound financial and organisational footing”.

This assurance was given by the chief executive and registrar of the Council for Medical Schemes, Dr Sipho Kabane and the scheme’s new curator, Joe Seloane, after a slew of allegations and reports to the contrary.

The battle to control Samwumed, which has more than R1.2 billion in its coffers, ended in the Western Cape High Court last year following allegations against the then court-appointed curator, Duduza Khosana.

During a media briefing yesterday, Kabane said: “The question is, is the curator in a crisis? The answer, certainly, is no.

“We think the scheme is in good hands. We’ve listened to a report that indicates that the scheme is stable.

“In fact, we are told that while the scheme was losing membership in the past five years, it is now growing in terms of numbers. Its numbers have increased to 33 000.

“It is targeting a membership of 40 000 by 2020. “The scheme is on a sound financial footing and it has reserves to the extent of R1.3bn.

“The curator is (also) reviewing its assets in land and property (in Retreat and Mitchells Plain).

“The scheme is much more in compliance with the Medical Schemes Act and Section 5(1) and (2) of the Financial Institutions (Protection of Funds) Act 28 of 2001.

“We are quite happy with the performance of the curator.”

Kabane said he was responding to complaints raised after Seloane’s appointment and Khosana’s removal.