HSACF Strengthens Anti-Corruption Drive in Health Sector Oversight

The Health Sector Anti-Corruption Forum (HSACF) has reaffirmed its steadfast commitment to combating corruption in South Africa’s health sector, following a comprehensive quarterly meeting held last week. With an intensified focus on accountability, transparency, and law enforcement collaboration, the forum is making significant strides in addressing systemic corruption and safeguarding public health resources.

A Broad Coalition: United Stakeholders in the Fight

Established to root out fraud and maladministration in the health system, the HSACF brings together a coalition of key players. These include the Directorate for Priority Crime Investigation (DPCI, also known as the Hawks), the Special Investigating Unit (SIU), the National Prosecuting Authority (NPA), the Health Professions Council of South Africa (HPCSA), the Council for Medical Schemes (CMS), and representatives from civil society, the private sector, and various arms of government.

This diverse makeup underscores the forum’s belief in a multi-sectoral approach to tackling corruption—one that draws on both institutional strength and civic engagement.

Hawks Update: Billions at Stake in Ongoing Investigations

During the meeting, the Hawks presented their latest findings and case statistics. Out of 106 active cases, 21 remain under investigation, two are before the courts, and 69 are pending decisions from the NPA. These cases collectively involve around R3 billion in alleged corruption, with R11.8 million already recovered in cash and assets.

The Hawks’ investigations span a range of health-related corruption schemes, including procurement irregularities, inflated invoices, ghost employees, and collusion between suppliers and officials.

SIU Report: Billions Prevented in Losses and Major Legal Referrals The SIU’s report highlighted major preventative and recovery achievements. The unit successfully thwarted over R6 billion in potential and actual financial losses, including R3.1 billion already lost to corruption and R1.6 billion in potential losses identified and mitigated through departmental referrals.

A notable area of progress was the crackdown on fraudulent medico-legal claims. The SIU uncovered 54 fake claims and concluded 97 investigations. These findings resulted in:

• R689 million in cases referred to the Legal Practice Council,

• R279 million referred to the Legal Practitioners’ Fidelity Fund, and

• R412 million submitted to the NPA for prosecution.

These steps represent a growing capability to detect complex corruption networks involving legal professionals, insurers, and health service providers.

NPA Focus: Prosecution of COVID-19 Corruption and Other Health Crimes

The National Prosecuting Authority reported substantial movement on priority cases, especially those arising from the COVID-19 pandemic under Proclamation 23 of 2020. From the SIU’s referrals, the NPA has enrolled 125 cases, with 83 finalised and 32 currently active in the courts.

These include cases involving misappropriation of emergency procurement funds, fake PPE contracts, and misuse of COVID-19 relief funding.

The NPA emphasized that swift and decisive prosecution remains essential to restoring public trust and deterring future misconduct.

CMS Oversight: Investigating Governance Failures in Medical Schemes The Council for Medical Schemes (CMS) provided updates on its investigations into various medical schemes. Highlights included:

• Foodmed Medical Scheme – under investigation for serious governance lapses,

• GEMS and Polmed – facing scrutiny for irregularities related to multivitamin scheme practices,

• Optivest Health Services – accused of overcharging for services,

• Sizwe Hosmed Medical Scheme – investigated for compliance breaches and financial mismanagement.

These inquiries reveal the need for tighter oversight and transparency within the private medical aid sector, which serves a significant portion of the South African population.

Towards a Corruption-Free Health Sector: A Whole-of-Society Approach Forum members underscored the importance of a holistic strategy—referred to as a “whole of society” approach—in fighting corruption. This model aligns with the goals outlined in South Africa’s National Development Plan, which envisions a society free from corruption, with institutions that promote integrity and protect public resources.

“The forum emphasised the need for continued vigilance, stronger preventive measures, and swift prosecution to eliminate fraud and maladministration in the health sector,” the official statement noted.

Ongoing Commitment: Transparency as a Cornerstone

The HSACF reaffirmed its unwavering commitment to fostering transparency, ensuring that public and private resources in the healthcare system are used responsibly and equitably. As fraud and corruption continue to divert critical funds away from life-saving services, the forum’s efforts are not just about financial recovery—they are central to restoring public confidence in the healthcare system.

With law enforcement, oversight bodies, and civil society working hand-in-hand, the forum presents a model for cross-sectoral cooperation in pursuit of ethical governance and accountability.