Local forum raises concerns over Tshwane’s medical aid brokerage tender
The metro has referred the matter to it's lawyers after the independent forum warned the tender violates employees’ legal rights.
An independent forum is calling for the immediate withdrawal of the Tshwane metro’s recently published medical aid brokerage tender.
The tender, which the Independent Financial Advisors Forum (IFAF) maintains is ‘unlawful’, would see the metro appointing a broker on behalf of its employees – a move that the IFAF says employees need to consent to.
Tshwane employees would effectively not be able to use an alternative medical aid broker.
According to IFAF Deputy Chairperson Buti Sigasa, the forum wrote to Mayor Nasiphi Moya on August 21, highlighting that the tender contravenes regulation 28(7) of the Medical Schemes Act 131 of 1998.
“It is established law that a member of a medical aid scheme has an inherent right to appoint a broker of their choice. That right supersedes the [rights of the] employer, in this case the City of Tshwane, or any other third party,” Sigasa explained.
He stressed that the metro cannot appoint a broker on behalf of employees unless members explicitly or implicitly consent to it, and even then, the consent may be withdrawn at any time.
“By September 5, the Tshwane mayor had yet to respond to our letter calling on the withdrawal of the tender, despite the 14-day deadline having lapsed,” Sigasa said.
Sigasa warned that the metro’s conduct was not only unlawful but also dangerous for the broader financial services sector.
“The city is setting a disturbing precedent by sending a message that it is acceptable to undermine the rights of beneficiaries and the transformation agenda with impunity,” he said.
“This is particularly worrying when right-wing organisations are actively trying to reverse the limited economic transformation gains achieved so far. Municipalities, as arms of government, should be leading by example in advancing transformation, not undermining it.”
Sigasa also pointed out that the Council for Medical Schemes (CMS) issued a statement on June 13, reaffirming members’ inherent right to appoint brokers of their choice.
He said that despite this, both Tshwane and the City of Johannesburg continue to push ahead with similar tenders.
Meanwhile, metro spokesperson, Lindela Mashigo, said Tshwane has referred the matter to its legal representatives for advice and will formally respond to the complainants.
“As the issues raised are of a legal nature and may lead to litigation, the metro cannot comment further through the media,” he stated.
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