SWAZIMED IN CRISIS: FINANCIAL RUIN, GOVERNMENT INTERVENTION, AND THE FIGHT FOR CONTROL
Eswatini’s largest medical aid scheme, SwaziMed (now Eswatini Med), is facing its biggest crisis in its 45-year history, and the nation is watching with bated breath. Media reports reveal that reserves have plummeted from over E350 million to less than E100 million, and some members are no longer receiving treatment in some South African facilities – once a crucial option for Swazis seeking specialized medical care.
This comes at a time when the country’s public health system is already in a dire state, with citizens dying from preventable diseases due to the unavailability of medication. The government’s failure to pay for drugs on time and manage the procurement well, alongside other reasons, has turned healthcare into a crisis.
For years, SwaziMed has been a lifeline for middle-class families seeking better alternatives, but that safety net appears to be unravelling. Now, in the midst of this chaos, an unprecedented event unfolded last week.
The Deputy Prime Minister (DPM) Thulisile Dladla, while acting as Prime Minister, ordered the police to shut down a SwaziMed Board meeting / press conference at the Hilton Garden Inn in Mbabane.
The meeting had been called following the suspension of Board Chair Sammy Dlamini and Principal Officer Peter “Samora” Simelane due to allegations of financial mismanagement.
Ordinarily, the Board has oversight over financial matters and is responsible for safeguarding funds in the interest of members. It acted within governance protocols in suspending officials suspected of misconduct – pending an investigation.
However, the government’s intervention to halt the meeting raises serious questions. What exactly was being protected? Why was this press conference blocked by the police? Speculation was rife that the Board intended to announce an interim Chair and Principal Officer, but they were silenced.
The DPM later claimed the intervention was to “avoid panic among SwaziMed members.” Then, in a move that only deepened confusion, Eswatini Med released a statement reinforcing that Sammy Dlamini and “Samora” Simelane remained in their positions.
The statement read, in part: “It was unequivocally confirmed that the Board of Eswatini Med is duly constituted, with Mr. Sammy Dlamini serving as Chairman and Mr. Peter Simelane as its Principal Officer.”
Furthermore, it discredited the earlier Board resolution that had suspended them. The government has since claimed that it was “assured” the SwaziMed Board is working to resolve the issues at hand. But this raises a troubling question: Which Board is the government referring to? If the legitimate Board met and suspended these individuals, then which entity is meeting with government to “resolve” the crisis?
The public and SwaziMed members are now left in the dark, wondering who is actually in charge. This contradiction is both concerning and telling. Another ambiguous phrase from the Swazi Med statement is the reference of the government to being the “Principal Founding Shareholder” of SwaziMed.
What does this mean? Did the government invest in SwaziMed at its founding? If so, how much? And does this give the government the authority to determine Board decisions, halt meetings, or even deploy the police to shut down discussions?
If SwaziMed was established as a nonprofit open medical scheme owned by its members, then why is government treating it as its own entity? I am sure the ordinary members of the scheme are not familiar with such names, hence the need to clarify.
For the uninitiated, SwaziMed was founded in 1980 to provide medical aid insurance to its members. The government is recognized as the "Principal Founding Shareholder," but it remains unclear whether it contributed funds, as this initiative was originally financed by the private sector. Eswatini Med is not, and has never been, a parastatal.
The concept was to establish a medical health insurance scheme owned by its members, primarily employers, who, upon enrolling at least 10 employees, would gain shareholder status. The Board used to be constituted by five people appointed by the government and four appointed by the employer /employees, but for the first time the latter appoints six with the government having still appoint five people into the Board.
It has always been member-driven, with cards accepted across Eswatini and South Africa. However, recent reports indicate that South African facilities are rejecting SwaziMed members, and its financial reserves have dwindled alarmingly.
This financial crisis is assumed to have been exacerbated by SwaziMed’s significant investment in Ezulwini Private Hospital (EPH), where it has 100% shareholding. Obviously, the stakes are high. If SwaziMed collapses, thousands of Swazis will lose access to medical aid, and opportunists will seize the moment to push their own agendas – whether disguised as “rescue plans” or hostile take-overs of its assets.
Another pressing issue is the long tenure of Peter “Samora” Simelane as Principal Officer. How has he remained in this position for so many years, despite persistent allegations of financial irregularities? Reports claim he has hired football players from his own team, Manzini Sea Birds, as SwaziMed employees.
Whether this and other claims hold water should be determined by an independent investigation. Yet, instead of welcoming scrutiny, Simelane appears to be resisting accountability. Why would any official fight so aggressively to stay in power amid allegations of fund mismanagement?
The ethical course of action would be to step aside and allow investigations to proceed – unless, of course, there are deeper, more sinister reasons for clinging to power. SwaziMed was created to serve Swazis – not individuals with vested interests.
The scheme’s profits should be reinvested into improving benefits for members, not into private hands. The idea was that profits should be used to subsidize future subscriptions for members, and over the years they have done so well in that regard.
The ongoing financial mismanagement allegations must be investigated transparently, and those responsible held accountable – no matter how powerful they may be. If the government truly cares about SwaziMed’s stability, it must stop shielding individuals from scrutiny.
Eswatini Med members must demand accountability. Who are these seemingly untouchable figures, and why does the government go to such lengths to protect them? The truth must come out. SwaziMed must not be allowed to collapse due to greed, corruption, and opaque power plays. The nation deserves answers – and it deserves them now.
If Swazi Med is indeed facing severe financial challenges that threaten its survival, transparency is essential. The organization should come clean about its situation and explore viable rescue options. One potential solution could be partnering with a public institution like the ENPF or PSPF, which could invest in the Ezulwini Private Hospital (EPH).
This investment would allow Swazi Med to recapitalize and stabilize the medical aid scheme that has long supported Swazis. Also, having a public institution involved would serve as a safeguard against opportunistic entities with ulterior motives, eager to seize control of the private hospital for selfish gain.