Johannesburg - The Sizwe Medical Fund remains under curatorship after the High Court in Pretoria ruled its board was not properly constituted, the Council for Medical Schemes (CMS) said on Friday.

“We are pleased once more that the courts of the land are assisting the regulator to pursue good governance in the medical schemes industry,” said Monwabisi Gantsho, CEO of CMS.

On Tuesday, the court ruled that the board of Sizwe Medical Fund had continued to be improperly constituted and confirmed that a curator must keep running the scheme.

Sizwe Medical Fund was placed under provisional curatorship in September 2012, after it emerged that its board of trustees had failed to address allegations of fraud relating to the election of two trustees in December 2010.

Gantsho said the board of the fund had persistently refused to comply with regulatory requirements.

He said all decisions taken by the board since December 2010, including its opposition to the curatorship application of the CMS, had been deemed invalid.

The curator would remain Marshall Ngubekhaya Gobinca.

Gobinca has been tasked to investigate the alleged irregularities in the governance of the scheme and furnish the CMS with a recommendation on how to address them within a year.

He should also ensure that a new board was elected.

The claims-paying ability of the fund remained unaffected by the curatorship.

CMS is the regulator of the medical schemes industry. - Sapa