Government Medical Aid Scheme Administrator Yet to be Chosen - Dr. Thahane

  Government has dismissed as unfounded, misleading and mischievous allegations by Old Mutual/Sechaba HealthCare about shady deals in the selection of a company to administer a planned government medical aid scheme and a resultant loss of millions of Maloti.

Minister of Finance and Development Planning, Dr. Timothy Thahane told a media briefing on November 17 that three companies had submitted proposals with respect to administering the public servants medical aid scheme, including Old Mutual/ Sechaba HealthCare, Ingwe and Sizwe.

Although on the basis of submissions, Sechaba HealthCare had been found to be the lowest on the basis of costs and had been recommended as the appropriate choice, Cabinet had however suggested that further to the cost criterion, companies should also show an interest in investing in the country.           

A two horse race ensued with Ingwe, through its parent company African Life, already involved in a partnership with the Lesotho National Life Assurance Company and prepared to invest more through the establishment of rural clinics.

Sechaba HealthCare, on the other hand, would base its operations in Bloemfontein, with only a front office established in Maseru to handle client interface and day-to-day queries. " It was only after they heard Ingwe had been determined the preferred bidder, that they offered a M7.5 million investment in the country."

The latter company now claims I withheld information from Cabinet, including the recommendation by NBC Consultants that Sechaba be declared the preferred bidder, such that Ingwe will now administer the medical aid Fund. In any case, it is not true that Government has made any awards regarding this matter. An announcement is yet to be made, Dr. Thahane said.

17 November 2004