Statement from Gen-Health curator re NPA asset seizure

Responding to a statement issued earlier today by the NPA re the R47 million seizure of assets belonging to previous Gen-Health managers, the current curator of the scheme, Boysie Phehlukwayo (pictured), reassured members that the seizure in no way impacted the health or status of the current Gen-Health Scheme.

“We are aware that this announcement has naturally caused some concern in the market place and some misleading speculation. It is important however to note that the individuals involved and referred to in the NPA report have not been at Gen-Health since December 2005. The AFU asset freeze was not against Gen-Health but its previous administrator and certain individuals.”

He said operations at Gen-Health will continue as usual and will not be affected in any way by this action. The scheme has been under curatorship since 2005 when the former administrator and the then trustees and principal officer were removed from their posts. It is currently administered by Sechaba Medical Solutions.

Under Phehlukwayo’s curatorship, a registered chartered accountant (SA) with a keen focus on corporate governance and risk management, Gen-Health has improved its profitability from R2,6 million in 2005 to R23.4 million in 2007 and improved reserves from 42.5% in 2005 to 51.4% in 2007.

.As a result of this strong financial position, the Scheme has been given a sound A rating by independent rating body, Global Credit Rating (GCR), for two consecutive years for its good claims paying ability.

In addition, Phehlukwayo’s keen corporate governance and risk management skills have ensured the scheme is fully compliant and in good legal standing with the Council. The Scheme also has full-time Risk Manager on board with extensive experience in, and knowledge of, the medical scheme industry.

In July 2007, Sechaba Medical Solutions was appointed as the new administrators to the Scheme, which has further boosted its position through improved service levels to members and claims turnaround times to providers.

“We congratulate the NPA, SAPS and Medical Schemes Council on their actions today and fully support a zero tolerance approach to crime,” concludes Phehlukwayo.