• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
See More

Hawks probe medical aid racket

Sep 18 2011 11:47 Sapa

Related Articles

Trustees rob members of funds - union

Private healthcare on warpath

Medical schemes trustees coining it

Medical aids too pricey, say members

Court bid to clarify medical aid benefits

Medical aid fees to guide NHI payments


Johannesburg - The Hawks are investigating corruption in the medical aid industry and have already raided 12 premises, the Sunday Times reported.

Trustees of two medical aids, Hosmed and Commed, allegedly worked with officials from the Council for Medical Schemes, the industry regulator, to defraud medical aid members, the paper reported, citing an affidavit from police Lieutenant-Colonel Gezina Lottering.

Allegations against these medical aids first surfaced last year, but apparently no action was taken against them.

Administrator Allcare, which looks after the medical aid accounts of 135 000 people, had also been implicated, the newspaper reported.

Lottering's affidavit describes a "culture of dishonesty" at Allcare, including bribery, corruption, and contraventions of the Medical Schemes Act.

She said money was systematically stolen from Commed through the submission of fictitious supplier invoices.

This required the appointment of compliant trustees, who would allow these fake invoices to be submitted.

Commed and Allcare premises were raided by the Hawks as part of this investigation, according to the Sunday Times.

One particular case of corruption detailed by the Sunday Times involved an alleged bribe paid by Allcare to Commed's former chairperson.

David Tsalapedi, a whistleblower fired by Allcare, said in an affidavit that Raato Mogajane, had asked for a R50 000 bribe to ensure Commed retained Allcare as its medical aid administrator.

Mogajane denied taking the bribe, suggesting that Tsalapedi was suffering from sour grapes after his dismissal from Allcare.

Allcare CEO Howard Phillips told the weekly that "absolutely nothing improper" happened at his company and that Tsalapedi was fired because he was dishonest
hawks  |  medical aid  |  fraud


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.

Fewer high-risk election areas - Mthethwa

There are fewer high-risk election areas this year compared to past elections, Police Minister Nathi Mthethwa has said while visiting Manenberg in Cape Town.


Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...