Government Employees Medical Scheme (GEMS) announced that its Chief Officer, Stan Molaoabi, has been placed on precautionary suspension pending the completion of an internal administrative procedure.
In a statement released to the media on Tuesday, the medical scheme clarified that this suspension is a temporary measure and should not be construed as an admission of wrongdoing or misconduct.
GEMS emphasized that the Board holds a fiduciary responsibility to ensure the consistent, fair, and impartial application of the Scheme's governance processes. It was also noted that the decision is unrelated to the financial standing, reserves, or solvency of the scheme, nor is it driven by demands from stakeholders or trade unions.
The Scheme is South Africa's largest limited membership medical scheme, providing medical coverage to public service employees. It currently serves over 890,000 primary members and more than 2.4 million beneficiaries.
Dr. Vuyo Gokola Appointed Acting Chief Officer
To ensure continuity of leadership and operational activities, the scheme appointed Dr. Vuyo Gokola as the Acting Chief Officer with immediate effect. GEMS added that the Scheme continues to operate normally and remains fully committed to providing quality medical benefits and services to its members and stakeholders. The Board requests respect for the Scheme's governance process during the review of this matter.
Earlier this year, it was reported that the scheme had discovered a funding deficit of approximately 2 billion rand after medical claims expenses exceeded member contributions in 2025, indicating growing financial pressure on the scheme.
Last year, the scheme paid out over 67 billion rand in claims while receiving only about 65 billion rand in contributions, creating a gap that raises concerns about long-term sustainability.