The curator of Sizwe Hosmed responded to critics after they launched legal efforts to liquidate her business and sequester her estate. Lebogang Mpakati, a registered business rescue practitioner, said the proceedings are private matters. She said they have no bearing on her ability to stabilise the troubled medical scheme.
Mpakati is facing pressure from the scheme’s suspended board of trustees. The trustees have brought legal action to remove her. They argue that she failed to disclose her legal troubles when taking on the role.
A court placed Sizwe Hosmed, administered by 3Sixty Health, under curatorship last year. The move followed long-running concerns about the scheme’s financial viability and governance.
Mpakati claimed that critics are using publicity around the legal matters to distract from the work at hand. She argued that "sensationalising" the proceedings reflects panic among those who feel threatened.
Legal Action Against Curator Heads to Court
In December, the court granted provisional liquidation and sequestration orders against Mpakati’s firm, Indalo Business Consultancy, and her personal estate. Catai Logistics and its liquidators filed the applications, claiming that Mpakati’s company collected R2.34m more than the fees she earned as a business rescue practitioner.
Since then, Seratime's liquidators have joined the case. Mpakati served as Seratime’s business rescue practitioner about five years ago. The court expects to finalize the process on 20 February.
The suspended chair of Sizwe Hosmed’s board of trustees, Luyolo Makwabe, did not respond to a request for comment by publication time.
Sizwe Hosmed Curatorship Targets Cost Drivers and Claims Controls
Mpakati blamed Sizwe Hosmed’s financial distress partly on the “extremely high” non-healthcare expenses that the administrator, 3Sixty Health, charged. She noted that the scheme terminated several of these services to reduce financial pressure.
Mpakati also highlighted several operational drivers, including a high volume of claims, duplicate payments, and underpriced contributions. She noted that she is now addressing these issues and linked these interventions to a stronger solvency position.
According to Mpakati, Sizwe Hosmed’s solvency ratio was 14% on 31 December. She said this was a significant improvement from 5% when she was appointed curator.
Fee Levels Flagged Against Industry Benchmarks
Data from Council for Medical Schemes (CMS) industry reports show Sizwe Hosmed’s fees were materially above open-scheme averages in 2021, 2022, and 2023. In 2022, the scheme paid managed care fees of R105.15 per beneficiary per month, compared with an open-scheme average of R60.43.
The same year, it paid R224.81 per beneficiary per month for administration. That was 23.6% higher than the open-scheme average. Marketing fees were also elevated. Sizwe Hosmed paid R120.84 per beneficiary per month for marketing, more than any other scheme and around four times the open-scheme average.
CMS Probes Procurement and Fraud Allegations
The CMS said preliminary reports from the curator’s investigations into procurement practices raised serious concerns. These findings have prompted the regulator to initiate its own inquiries.
The CMS also said it was made aware of allegations that employees linked to a service provider defrauded the scheme of about R10m. It said it is following up after arrests were made in November 2025.
For the healthcare sector, the case is a reminder that medical scheme stability depends on rigorous governance, defensible cost structures, and tight claims controls. The coming weeks will test whether the Sizwe Hosmed Curatorship can sustain its solvency gains while navigating mounting legal and regulatory pressure.
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