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CMS investigations into alleged racism and corruption to cost R14.6m

Investigations at the Council for Medical Schemes into alleged racism of schemes and corruption within its own ranks, will cost the regulator approximately a tenth of its entire annual income from schemes. Netwerk24 reports that the CMS is planning to spend R10m on the racism investigation and R4.6m for the Special Investigations Unit to investigate its own officials for maladministration and corruption.

The CMS collected R144.2m from the country’s medical schemes, R8m from the department of health and R7.5m from other entities regulated by the CMS.

CEO Siphon Kabana briefed MPs on the affairs of the CMS. He said the racism inquiry report was supposed to be concluded by 1 November, but the reaction from role-players was so overwhelming that a draft report is only expected at the end of January.

Kabana said the CMS is also conducting its own investigation into personnel, but there is no indication of the costs as yet. “It will definitely be additional to the R14.6m, but we cannot give an estimate at this stage.” The CMS suspended five of its senior officials in September.

[link url="https://www.netwerk24.com/Sake/Muntslim/Mediese-Fondse/soveel-kos-ondersoek-na-rassisme-by-mediese-fondse-20191014"]Netwerk24 report[/link]

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