Sizwe Hosmed curator not challenging removal from office

Lebogang Mpakati will not challenge her curatorship of Sizwe Hosmed, which was canceled earlier this month after Ian Fleming was roped in as her successor following an urgent court application by Luyolo Makwabe, a former executive of the scheme.  

Post the 2021 merger between Sizwe Medical Fund and Hosmed Medical Scheme, Sizwe Hosmed has been rocked by problems which culminated in the company being placed under curatorship and its reserve ratios plummeting.

The Gauteng High Court appointed Mpakati as curator of the scheme in September last year. This, however, did not stop the scheme from losing numerous members affiliated to the South African Local Government Association (SALGA) which did not renew its membership.

Mpakati has now said that her curatorship of the scheme has been terminated “following the cancellation of my mandate” on February 11 this year.

“The cancellation follows a personal legal dispute against me in a matter that has no bearing on my curatorship of Sizwe Hosmed but in order not to contest the cancellation, I have decided to comply and hand over curatorship to Ian Fleming,” she said.

Mpakati has, however, said that her curatorship has been terminated despite having handled the turnaround and restructuring assignments for Sizwe Hosmed well.

Where medical service providers had started to withdraw service to members, Sizwe Hosmed has over the past few months managed to restore these. Mpakati was dismissed after Luyolo Makwabe, the scheme's former principal officer Luyolo Makwabe launched a court application seeking to restore powers of the board of trustees.

“Most hospital groups have since reopened access to members, supported by more predictable claim payment cycles and strengthened engagement. These include Netcare, Life Healthcare, Lenmed, Busamed, Clinix, and National Hospital Network facilities,” said Mpakati.

Nonetheless, in 2024/2025, Sizwe Hosmed failed to pay about 787 claims that include oncology related claims. Members under the scheme have also had to endure a 19.5% contribution increase in November last year as the company sought to address historical under-pricing.

A feud had always marred relations between the curator and the board of trustees, especially after a KPMG forensic review found that a surge in claims during the first half of 2023 was a principal driver of the deterioration of the scheme’s financial position.  

In 2022, Sizwe Hosmed was among the top six largest open medical aid schemes as it served 63,577 principal members. Its members have now fallen to 12,000 due to challenges the company has faced and mismanagement, according to Mpakati, who will not be challenging her removal from curatoship of the company.

“The Courts have correctly continued to place the Scheme under curatorship due to perennial challenges which took place right under the noses of the erstwhile Board of Trustees– a decision, which I believe is in the best interest of the Scheme and its members in the long term,” she said.

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