The Government Employees Medical Scheme has placed principal officer Stan Moloabi on precautionary suspension as the scheme continues to face scrutiny over its 2026 contribution increases.
The board of the Government Employees Medical Scheme (GEMS) has suspended its principal officer, Stan Moloabi, pending the completion of an internal administrative process.
Moloabi confirmed the suspension on Tuesday but declined to provide further details, saying the conditions of his suspension prevented him from commenting.
GEMS, which provides medical cover to more than 2.4 million beneficiaries, is the largest medical scheme available to South African public servants and their dependants.
Board Says Suspension Not Linked To Finances
The GEMS board said the precautionary suspension is not related to the scheme’s financial position, reserves or solvency.
It also said the decision was not prompted by demands from unions or other stakeholders.
Board chairperson Nomzamo Tutu said the organisation’s focus remained on maintaining stability, protecting members’ interests and upholding strong corporate governance.
The board stressed that the suspension should not be interpreted as a finding of misconduct or wrongdoing, describing it as an interim step while internal processes are completed.
Contribution Increases Have Fuelled Tensions
The development comes against the backdrop of sustained pressure from unions over GEMS’ contribution increases for 2026.
The scheme initially announced a weighted average increase of 9.8%, which was later reduced to 9.5% from April 1.
GEMS subsequently announced in May that contributions would be reduced to a 7.5% increase from July 1. However, the Council for Medical Schemes vetoed the move, arguing that the proposed reduction could threaten the scheme’s financial stability.
The contribution dispute has placed additional attention on the governance and financial decisions surrounding the scheme.
Acting Leadership Takes Over
While Moloabi’s suspension is in effect, GEMS chief operating officer Vuyo Gqola has been appointed acting principal officer.
The board said the scheme’s operations would continue as normal while the internal administrative process unfolds.
For millions of public-sector employees and their dependants who rely on GEMS for healthcare cover, the board’s assurance that services remain unaffected will likely be closely watched as the situation develops.
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