Council applies to court to place renaissance Medical Scheme under curatorship

The Registrar of Medical Schemes and the Council for Medical Schemes have made application to the Johannesburg High Court to place Renaissance Medical Scheme under curatorship. The scheme has approximately 30000 beneficiaries (principal members and dependants combined).

After a brief appearance before Justice Lamont on Friday 9 May 2008, the matter was postponed for hearing until Tuesday 20 May 2008. The Board of Trustees of the scheme, which is opposing the application, has until Thursday this week to file responding papers.

The application follows protracted interaction between the Registrar and the medical scheme, culminating in a report being furnished to the Registrar by the scheme on 29 April 2008, showing the scheme to be in financial difficulty. The Registrar has also been particularly concerned about an increase in complaints and enquiries relating to non-payment of claims by the scheme.

If the application is successful, the curator will conduct a rapid assessment of the financial situation of the scheme, the causes of the financial difficulties, and the most appropriate course of action to protect members and to normalise the situation as rapidly as possible.

The Council and Registrar are recommending to the Court that Mr Mzi Nkonki, chairperson of Nkonki (an accounting and audit firm), be appointed as the curator.