Legal Row Over Medical Aid Millions
March 10, 2014
The Council of Medical Schemes (CMS) has confirmed that it is investigating allegations of bribery and corruption against the CEO and registrar of the council, Monwabisi Gantsho.
The council is also investigating “irregularities” concerning the former provisional curator of Medshield Medical Scheme, Themba Langa.
The two cases are linked.
Langa claimed in court papers in February that Gantsho asked him for a R3 million kickback and supplied details for two bank accounts to be credited with the bribe money.
“Gantsho told me he has tax problems to settle,” Langa said in a court affidavit.
But Langa’s allegations were apparently a response to legal action by Gantsho seeking to remove Langa from his position as provisional curator of Medshield for alleged “dubious dealings”.
Medshield is among the largest open medical schemes with 174 000 members. It is regulated by the CMS in terms of the Medical Schemes Act.
Gantsho says that Langa made an “unreasonable” deal in November by securing the Medshield trademark for R10 million.
“Spending R10 on a worthless trademark is not incurring a reasonable expense,” said Gantsho.
Langa disagrees, saying he did well to negotiate the price down from R30 million.
Langa also claims that Gantsho wanted him out of office before he could hold the Medshield trustee elections on 11 April.
Langa’s curatorship issue was settled out of court and he has resigned his post.
The CMS is going ahead with forensic investigations into both allegations.
All info was correct at time of publishing