More than 15 members of the Government Employees Medical Scheme (GEMS) have been arrested in Mbombela for fraud and corruption by the Directorate for Priority Crime Investigations (Hawks) this morning.

The Mpumalanga Hawks’ spokesperson, Captain Dineo Sekgotodi, says the suspects will be taken to the Nelspruit District Court today for their first appearance.

She says between November and December 2020, these GEMS members allegedly colluded with certain pharmacies to defraud the medical scheme. This was allegedly done by claiming for services that had not been rendered by the pharmacies.

Allegedly, cash would then be exchanged between the two parties, or in some instances, there would be purchases of items that were not covered by the scheme.

Sekgotodi said GEMS has suffered an estimated loss of R2.3m.

* This article has been amended after it came to light that initial information, supplied by the Mpumalanga Hawks to Lowvelder, the original publication, was incorrect. It previously stated that the persons arrested were employees of GEMS when in fact, they were not employed by but members of the scheme. 

Dr Phumelela Dhlomo, the chief marketing officer of GEMS, has since released a statement in which GEMS confirmed the suspects are not employed by it. “The investigation and those charged are not subjects of GEMS, nor any agents thereof,” Dhlomo said.