From the Council for Medical Schemes:
Press release 17 of 2012: Medshield Medical Scheme under provisional curatorship
The North Gauteng High Court in Pretoria placed Medshield Medical Scheme under provisional curatorship today, following
the successful application of the Council for Medical Schemes to address governance concerns at the scheme.
Council is the regulator of the medical schemes industry, responsible for enforcing compliance with the Medical Schemes
Act 131 of 1998 to ensure that the interests of beneficiaries are prioritised at all times.
The provisional curator, Mr. Themba Langa, replaces the current Board of Trustees and Principal Officer and must ensure
that a new Board takes over the reigns at Medshield in due course, one that is fit and proper to run the affairs of the
Assurance to beneficiaries
Beneficiaries of Medshield should rest assured that the claims-paying ability of their scheme is not affected by the
Dr Monwabisi Gantsho, Registrar of Medical Schemes and Chief Executive of the Council said: “The provisional curatorship
has nothing to do with the financial soundness of the scheme. There are no concerns whatsoever over the financial position
of the scheme.”
Medshield remains one of the largest and healthiest schemes in the market. At the end of 2011, the scheme had over
236 000 beneficiaries and a solvency of 36.6% – which is above the 25.0% required by the Medical Schemes Act.
Medshield remains financially sound and sustainable in the long run. Dr Gantsho added: “I am looking forward to a speedy
return of the scheme to sound governance. The curator will be working very closely with the Regulator in this regard.”
Advice to brokers
Brokers are advised to act with restraint. Any advice they give must accord with the principles