COO has been appointed acting principal officer.
Suspended principal officer, Stan Moloabi. Picture: Linkedin/Gems
The Government Employees Medical Scheme (Gems) has placed its principal officer, Stan Moloabi, on precautionary suspension after members expressed dissatisfaction with the refusal to lower monthly contributions.
But the medical scheme’s chair, Nomzamo Tutu, said in a media statement released on Tuesday that the two are unrelated, and that Moloabi was not suspended in connection with the scheme’s financial position, reserves or solvency.
Gems head suspended pending admin process
“The decision to place the principal officer on precautionary suspension is an interim measure that enables the appropriate internal processes to unfold with integrity and independence. It should not be construed as a finding of misconduct or wrongdoing,” she said.
She said the head of the largest medical scheme for public servants was suspended pending “the completion of an internal administrative process”.
Gems won’t elaborate
While Business Day reports that Moloabi said he cannot elaborate further on his suspension because he is prohibited from discussing the matter, Tutu did not detail what the “internal administrative process” entails.
“The board has a fiduciary responsibility to ensure that the scheme’s governance processes are applied consistently, fairly and without prejudice,” said Tutu.
Chief Operating Officer, Vuyo Gqola, has been appointed acting principal officer. “The scheme continues to operate normally and remains fully committed to delivering quality healthcare benefits and services to its members and stakeholders,” said Tutu.
“Our priority remains the continued stability of the scheme, the protection of our members’ interests and adherence to the highest standards of corporate governance.”
Contribution decrease rejected
Earlier in July, the Council for Medical Schemes (CMS) upheld Gems’ 9.5% contribution increase, a move many were unhappy with.
“Schemes seeking to moderate contribution increases are generally those that have already attained and maintained solvency levels in excess of the prescribed minimum,” read a letter to GEMS from CMS registrar Musa Gumede.
“In this instance (GEMS) solvency remains below the statutory threshold, and the proposed reduction is therefore not considered prudent.”
The Medical Schemes Act requires schemes to maintain a solvency ratio of at least 25%. A scheme’s ratio, which is the ratio of its cumulated funds to its annualised contribution income, is considered a key measure of its financial stability.
