MEDSCHEME DID NOT DESERVE E30M WINDFALL - SWAZIMED

MBABANE – “Medscheme was awarded a windfall they never worked for.” The Swaziland Medical Aid Fund (SwaziMed) made this submission yesterday at the High Court. The medical aid provider informed the court that Medscheme Administrators Swaziland (Pty) Ltd did not deserve the amount of E30 million, which it was awarded by the arbitrator, Judge Philip Levinsohn.

The arbitrator awarded Medscheme damages to the tune of E30 million after he concluded that SwaziMed breached its contract agreement with Medscheme.
Judge Levinsohn awarded Medscheme a sum of E21 904 540.63, being the gross amount it would have received between April 2013 and December 2013.
The arbitrator also awarded Medscheme further damages in the sum of E4 781 017.45 in respect of unpaid administration fees for the months of January to March 2017.

Interest on both amounts was at the rate of nine per cent calculated from the date of the award. Judge Levinsohn also declared that the appointment of SwaziMed Principal Officer Peter Simelane was invalid.
SwaziMed filed a review of the decision of the arbitrator and the matter was heard by a full bench comprising Judge Mbutfo Mamba, who sat with Judge Cyril Maphanga and Judge Doris Tshabalala.

In his submissions, Mangaliso Magagula of Magagula and Hlophe Attorneys, said by awarding Medscheme the ‘windfall’ Judge Levinsohn exceeded his powers in a manner which called for the court to exercise its supervisory powers.
Magagula denied that SwaziMed breached its contract with Medscheme, which will make its submissions today. He submitted that the award for damages had grave implications for SwaziMed. He also submitted that there was no justification for awarding the said amount. The award, according to Magagula, was out of proportion.

Misdirected

“The arbitrator completely misdirected himself and exceeded his powers by awarding Medscheme a windfall they did not work for. They are happy to get E30 million they don’t deserve and there is no justification,” said Magagula.
SwaziMed was not satisfied with the manner in which the damages were calculated which he described as strange and mentioned that that was why they referred to the award as a windfall which Medscheme was allegedly not entitled to. Magagula told the court that the award was based on patent errors of law which were manifest.


 

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