Press Release 6 of 2021: Discovery and LA Health Investigation
The Council for Medical Schemes (CMS) has noted with deep concern a recording an employee of Discovery Health, Mr Khethang Malefane addressing Board of Trustees (BoT) members and brokers aligned to LA Health Medical Scheme.
The CMS is mandated to protect the interest of medical scheme members at all times and consistent with this, is investigating the pronouncements made by the Discovery Health employee. The CMS will take the appropriate regulatory action once the investigation has been concluded.
Advice to Board of Trustees
BoT members must always be conscious of the threat of external forces who may try to manipulate scheme elections to appoint people who will pursue their own interests. BoTs are reminded to conduct themselves in a fit and proper manner and to manage the activities of the medical schemes in accordance with applicable laws and the rules of the medical scheme, consistent with section 57(1) and read with 57(4)(a)-(i) of the Medical Schemes Act (131 of 1998).
Advice to medical scheme members
Members of schemes are warned not to collude with brokers and administrators, who may not always hold the interests of members supreme.
The CMS reiterates its mandate and commitment to protecting the interests of medical scheme members at all times.
Ms Mmatsie Mpshane
Acting General Manager: Stakeholder Relations
071 371 5667