Peter Simelane, the principal officer of Eswatini Medical Aid Fund (Eswatini Med), was released from police custody after paying a fine of E30,000. The fine, imposed by Judge Titus Mlangeni, served as an alternative to a 30-day imprisonment sentence for contempt of court.
This fine represents half of the original 60-day sentence, with the remaining half suspended for five years. Judge Mlangeni had initially set a fine of E100,000 for Eswatini Med, noting that while the medical aid could not be jailed, the penalty would apply to Simelane for his actions.
The case stems from a dispute between Eswatini Med and EswatiniBank over the bank’s decision to allow some employees to switch to another medical aid provider. Eswatini Med argued that this “split membership” was against its rules, which require all employees of an organization to either subscribe entirely to Eswatini Med or none at all.
Eswatini Med contends that its approach is based on the principle of social solidarity, where cross-subsidization occurs between younger, healthier members and older, less healthy ones. The medical fund’s survival relies on this risk-pooling mechanism.
The conflict was further complicated by allegations that Judge Mlangeni’s wife was one of the employees who migrated to another provider, leading Eswatini Med to claim a conflict of interest. The medical aid questioned the judge’s impartiality, arguing that his wife’s involvement created a reasonable suspicion of bias.
However, Judge Mlangeni denied any conflict of interest, insisting that his wife was not a member of Eswatini Med, adding that he would not have presided over the case if she were.
EswatiniBank is seeking a ruling that Eswatini Med’s prohibition on split membership is unlawful, while the legal dispute continues to unfold.
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