This followed an urgent application in the Western Cape High Court from two parties seeking her removal.
Khosana was a court-appointed curator meant to handle and restore the affairs of the medical scheme.
The applications came on the heels of allegations received by CMS regarding Khosana’s conduct, which ranged from paying herself an exorbitant salary to purging executive members of the scheme and failing to execute her duties. The high court has appointed Joe Seoloane as provisional curator.
CMS acting chief executive and registrar Sipho Kabane said: “We are pleased with the outcome of the court process on this matter and would like to assure members of medical schemes that the CMS remains committed to exercising the statutory affairs of the schemes.”
Kabane said the judgment favoured the members and the scheme.
According to the court documents, Samwumed holds in excess of R1.2billion in its coffers, with about R1billion in reserve and an estimated membership of more than 80 000.
Samwumed was placed under temporary curatorship in May by acting Judge Pearl Andrews after the CMS approached the court with concerns about its management.
Two months into her role Kabane, who had recommended Khosana, penned a letter asking her to resign.
The court said its decision would not affect the appointment of a permanent curator on October 25.
In an exclusive interview with the Cape Times, Khosana said she would appeal the court's decision.
Andre Maxwell, former deputy chairperson of the trustees, filed an application asking the court to remove Khosana based on her changing the benefit structure, exorbitant salary, expenses and the mistreatment of staff.
Khosana is contracted to receive remuneration of R234 000 plus expenses, which Maxwell argues stood at R150 000 and Khosana maintains stood at R100 000.
The court said it came down to Khosana not putting in motion any procedures to appoint a new board of trustees, including calling a general meeting. It granted Maxwell's application for Khosana’s removal as it did not prejudice the party or her.
Khosana said the judgment was not based on factual information but allegations of disgruntled individuals.
The Democratic Municipal and Allied Workers' Union of South Africa, whose members belonged to the scheme, said it was disappointed in the judgment.