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Health Squared trustees and consultants may still face sanctions

The trustees of the board of Health Squared Medical Scheme, now in liquidation, may still face sanctions for the alleged maladministration of the scheme and other irregularities that led to its financial ruin.

Its collapse in August 2022 left Heath Squared’s about 13 000 members scrambling for alternative medical aid cover.

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The Council for Medical Schemes (CMS), the industry regulator, was coy last week in its response to a Moneyweb question about what action has been taken, or is planned, by the CMS against any Health Squared trustees and consultants for the alleged maladministration of the scheme and alleged irregular actions to outmanoeuvre the Registrar of Medical Schemes.

The alleged maladministration and irregularities were highlighted last year in a provisional report compiled by provisional curator of scheme Johannes Seoloane and affidavits made in support of high court applications by the CMS.

Stephen Monamodi, CMS senior manager of communication, marketing and stakeholder relations, said on Friday the curator was replaced by liquidators, who have the power to take appropriate action against any person who committed misconduct in the affairs of the scheme.

“The liquidation proceedings are still underway. Important to note is that during this undertaking, the CMS cannot interfere in any work of the liquidators,” said Monamodi.

He added that the CMS would be guided by the final report of the liquidators to determine the appropriate action, pointing out that the scheme remains under a liquidation order by the high court.

History

Health Squared was formed in 2018 through the amalgamation of two long-standing medical aid providers, Resolution Health and Spectramed.

The whole of the business of Health Squared was placed in final liquidation by the High Court in Johannesburg in February.

Monamodi said any action taken by the CMS against any trustees or consultants to Health Squared

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