A statement by the acting principal office of Bonitas Medical Fund

Further to media reports that appeared in certain weekend newspapers on 29 November, Bonitas Medical Fund would like to reiterate its statement of 17 July with regard to the sustainability of the fund. In that statement, Bonitas advised that the Registrar of Medical Schemes had obtained a court order in terms of Section 51 of the Medical Schemes Act in order to conduct an enquiry into certain governance issues at the fund.

As stated then, Bonitas respects the right of the Registrar to call for an enquiry into the activities of any medical scheme, and recognises the checks and balances that are in place for the protection of members and the industry in general. The fund has offered its full cooperation throughout the process, and has appointed a team of legal advisors to facilitate it.

The enquiry itself was authorized in a court application from which Bonitas was excluded, and the fund therefore did not have the opportunity to address its concerns about the application or to put forward its own case. For this reason, it welcomes the process, and the opportunity to present direct evidence on all of the issues. However, as the enquiry is still in progress, we cannot comment on any of the legal or substantive issues. Bonitas is the second largest medical fund in South Africa, and covers 650 000 lives, a responsibility we take very seriously. To comment on a matter that is sub judice would be irresponsible. The investigation is being conducted by an independent investigator, and a final report is due to be presented in court on 15 December. Bonitas will issue a full statement once the report has been tabled and the board has had the opportunity to review it in full.

We would like to assure members and stakeholders that the core business of the fund is unaffected by this process, and that claims will continue to be paid as usual. Bonitas has always been - and remains - in an exemplary financial position. Its members have every reason to be confident in the fund, as it currently retains R2.1 billion in reserves and enjoys a solvency ratio almost double the 25% required by law. Indeed, the Office of the Registrar of Medical Schemes issued a media statement on 16 July 2009 assuring the industry – and specifically members and healthcare brokers - that the scheme remains very stable and financially sound.

Bonitas looks forward to the enquiry being concluded speedily and transparently, and is confident that due process will be followed. While the matter is underway the fund will, as always, continue to provide its members with the same level of excellent service to which they are accustomed.