GEMS principal officer Stan Moloabi pictured during a GEMS event
Image: GEMS/Facebook
The Department of Public Service and Administration (DPSA) is proposing a multi-departmental parliamentary meeting to address growing concerns surrounding the Government Employees Medical Scheme (GEMS), following the precautionary suspension of its principal officer, Dr Stan Moloabi, earlier this week.
Moloabi has been in the public service unions' crosshairs following successive increases in GEMS contributions, including a 9.8% hike, later partially adjusted to 9.5%, for 2026.
This followed a 13.4% increase in 2025.
Major labour federations and unions, including Cosatu, Nehawu and the Public Servants Association (PSA), have criticised the increases as economically unjustifiable amid raising living costs.
GEMS had sought to reduce the weighted average contribution increase to 7.5%, but the Council for Medical Schemes (CMS) rejected the proposal, warning that such a reduction could threaten the scheme’s long-term solvency and financial stability.
The 9.5% increase therefore remained in place.
Deputy Minister of Public Service and Administration Pinky Kekana has proposed a multi-departmental meeting to probe governance issues at public service medical aid GEMS which earlier this week put its principal officer on precautionary suspension.
Image: File
DPSA Deputy Minister Pinky Kekana has now proposed a joint parliamentary session involving the Portfolio Committee on Public Service and Administration, the Portfolio Committee on Health and the Standing Committee on Finance.
The proposed meeting is intended to address concerns around GEMS’ governance and oversight, as well as the broader challenges facing the scheme.
Public Service and Administration Portfolio Committee chairperson Jan de Villiers welcomed the proposal.
He said the meeting was important because, although GEMS is not funded directly from the fiscus, it receives contributions from both members and the state as employer.
The scheme was also established through an Act of Parliament, giving Parliament an oversight role, he said.
“GEMS reported member fraud. The scheme managed to recoup these funds,” said De Villiers.
The proposed intervention comes as GEMS insists that Moloabi’s precautionary suspension was not related to the scheme’s financial position, reserves or solvency.
GEMS chairperson Nomzamo Tutu said the board had appointed Dr Vuyo Gqola as acting principal officer with immediate effect.
“To ensure uninterrupted leadership and operational continuity, Dr Vuyo Gqola has been appointed as Acting Principal Officer with immediate effect,” Tutu said.
She said the scheme continued to operate normally and remained committed to providing healthcare benefits and services to its members.
“The Board requests that the Scheme’s governance process be respected while the matter is being addressed,” she said.
GEMS is the largest restricted-membership medical scheme in South Africa, providing healthcare cover primarily to public service employees.
It has more than 890,000 principal members and more than 2.4 million beneficiaries.
The latest developments come amid mounting concern about the scheme’s finances.
Earlier this year, GEMS reported a funding shortfall of about R2 billion after healthcare claims outpaced member contributions in 2025.
The scheme paid more than R67 billion in claims during the year, while receiving about R65 billion in contributions.
The gap has raised concerns about the scheme’s long-term financial sustainability and was among the factors cited in the wider debate around contribution increases.
However, GEMS’ latest statement sought to separate those financial pressures from the suspension of Moloabi.
The proposed joint parliamentary meeting could therefore provide an opportunity for the various stakeholders, including GEMS, government departments, Parliament and organised labour, to confront concerns over the scheme’s governance, affordability and financial sustainability.
For public servants, the issue is particularly significant because increases in GEMS contributions directly affect their disposable income at a time when household costs remain under pressure.
The meeting is also likely to bring renewed scrutiny to the relationship between the government as employer and GEMS as a medical scheme serving millions of public sector employees and their dependants.
