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Hospital room at Khayelitsha Hospital.
The Government Employees Medical Plan (GEMS), which is positioning itself to administer the National Health Insurance (NHI) fund, has been hit by allegations of bid rigging, fraud, mismanagement and corruption totaling more of R300 million.
The allegations of corruption at GEMS are detailed in a series of 10 explosive forensic reports showing that over a five-year period the scheme had designated and paid more than R300 million to companies in which some of its executives had direct financial interests.
This comes at a time when South Africans are expressing concern that the NHI will collapse under the weight of corruption, like many other state entities. GEMS has become one of the pioneers who will likely be appointed by the government to administer the NHI.
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