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Press Statement: Media reports on CMS investigating cases against security companies

The Council for Medical Schemes would like to clear speculation regarding ongoing media reports suggesting that “the Council for Medical Schemes was actively investigating cases against security companies that deducted money from workers for medical insurance but failed to pay it over to Affinity Health, the chosen service provider.”

We would like to correct this assertion and put it on record that the CMS only dealt with a complaint by three unions (KAWU, SATAWU and AWU) against Imvula Quality Protection and/or Kaelo Risk (Pty) Limited. The Unions, in this case, were duly represented by Raselo Incorporated

Specifically, the complaint CMS dealt with related to Imvula and Kaelo acting outside the collective agreement. It was dismissed on the basis that it fell outside the CMS’s regulatory mandate.

The complaint failed to meet the criteria set out by Section 1 of the Medical Schemes Act; “a complaint against any person required to be registered or accredited in terms of this Act, or any other person whose professional activities are regulated by this Act…”

A notice of dismissal was subsequently communicated to Raselo Incorporated on 2 December 2022 – clearly stating that the matter was outside CMS’ jurisdiction and that pursuing an investigation regarding what lies in a collective agreement would be overstepping its mandate.

Ends

Issued by CMS Communications

Stephen Monamodi – Spokesperson

media@medicalschemes.co.za

Download the full statement here.

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