Medical aid under provisional curatorship over faction battle
A conflict in Samwumed paralysed the scheme’s board of trustees, putting its funds at risk
The South African Municipal Workers Union Medical Scheme (Samwumed) has been placed under provisional curatorship due to a factional battle. The Council for Medical Schemes successfully argued in the High Court in Cape Town that labour union conflict had paralysed the scheme’s board of trustees, putting its funds at risk. Samwumed is associated with the South African Municipal Workers Union (Samwu). Samwu, which has been riven by factionalism, is entitled to appoint half of the Samwumed board’s 18 trustees. The court has appointed former Medshield principal officer Duduza Khosana as provisional curator, and given her until July30 to report back. Samwumed was in sound financial health, with a solvency ratio almost four times the statutory minimum of 25%, the curator said. She assured members and service providers claims would continue to be paid. Fighting factions The council argued that conflict between two Samwu factions had resulted in material irregularities such that the board ...