Under siege medical administrator Sizwe Medical Fund has stopped short of accusing the Council for Medical Schemes (CMS) of unfair discrimination.

Sizwe chair Luyolo Makwabe told Sowetan in a recent hard-hitting interview and media statement that the council was tarnishing the name of his medical scheme to favour established medical aid companies.

Makwabe spoke after the CMS released a media statement that it was intending to put Sizwe under curatorship. The CMS also turned down a proposed merger between Sizwe and Hosmed.

"We should note that it has never happened in the history of medical schemes that the registrar makes public his intention to place a scheme under curatorship, this action only tarnishes the name and reputation of Sizwe. We are appalled at the behaviour of the [CMS] registrar at a time that the country and the world is fighting Covid-19.

"He has created doubt about the safety of Sizwe members' money and the ability of the scheme to serve them. Dr Sipho Kabani has not served the interest of Sizwe and Hosmed members.

"It is important that we should inform the members that Sizwe has submitted to CMS Sizwe performance results for the prior year and the first quarter results. The scheme is in a strong and healthy financial position with reserves 36% against regulatory requirements of 25% and our credit rating is AA-. The scheme is well managed and will meet or even exceed its budget for the year 2020."

Makwabe said when there is a merger there should be an undue advantage enjoyed or disadvantage suffered by members of any of the merging schemes.

"In this case both schemes have high solvent and members would benefit from economies of scale. The registrar has approved mergers before that were highly unmatched than this one. CMS itself has defined the Sizwe and Hosmed merger as the best merger ever."

Makwabe said CMS promoted mergers to make schemes stronger, but alleged it seemed that these mergers were only acceptable to Kabane and his predecessors if they strengthened the big players.

"With Covid, it is inevitable that both Sizwe and Hosmed will lose members through retrenchment and the merger will protect remaining members of the merged scheme. Dr Kabane is acting against the interest of members. He is also acting against transformation, we seem to be pursuing too deep a transformation against his liking," he said.

The CMS said in a media statement it has noted with concern the series of allegations made on the declined Sizwe Medical Fund/Hosmed Medical Scheme merger, and the application to place Sizwe Medical Fund under curatorship.

"The matters are currently before the court and the CMS will only comment on these issues once the court has made its ruling. The CMS reiterates its mandate and commitment to protecting the interests of medical scheme members at all times," the statement read.