Times Of Swaziland: COMPETITION COMMISSION INVESTIGATES SWAZIMED AFTER COMPLAINTS

COMPETITION COMMISSION INVESTIGATES SWAZIMED AFTER COMPLAINTS
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Siboniso Nkambule on 09/10/2024 09:29:00


MBABANE - The Eswatini Competition Commission (ESCC) has launched an
investigation into the Eswatini Medical Aid Fund (Eswatini Med) following
complaints of alleged violations of the Competition Act, 2007.
The medical aid provider, also known as SwaziMed, is alleged to be engaging in
prohibited trade practices, which may be in contravention of Section 34, read in
conjunction with Section 31(a) of the Act. In a press statement issued by the
ESCC executive director, it was alleged that Eswatini Med is engaging in a
non-price predatory strategy by frustrating the competitors of its medical
practitioners, which is likely to eliminate them from the market. This comes
after Members of Parliament (MPs) slammed what they termed unfair and irregular
practices by the medical scheme, SwaziMed.
The MPs asked why the scheme was allowed to continue operating when it had
financial challenges.  This was during a sitting at the House of Assembly, after
Mbabane East MP Welcome Dlamini posed an oral question to Minister of Finance,
Neal Rijkenberg, regarding the status of the medical scheme. The MP asked the
minister to inform the House if SwaziMed is still fit and proper to continue
operating, since it is no longer able to meet its major obligations in the
medical sector. Also, the MP asked to know why the Financial Services Regulatory
Authority (FSRA) is acting in a derelict manner on its duty, when it comes to
the medical schemes sector.The Competition Act provides for the encouragement of
competition in the economy by controlling anti-competitive trade practices,
mergers and acquisitions, protecting consumer welfare and providing for an
institutional mechanism for implementing the objectives of the Act and other
matters incidental thereto.
dominant
Section 34 states that any person who has a dominant position in the market
shall not use that power to carry out any of the practices enumerated under
sections 30 and 31. Meanwhile, Section 31 states that enterprises shall refrain
from the following acts or behaviour if they limit access to markets or
otherwise unduly restrain competition, or have or are likely to have an adverse
effect on trade or the economy in general-(a) predatory behaviour towards
competitors including the use of predatory cost pricing to damage, hinder or
eliminate competition.
In the press statement, the executive director advised members of the public
that the ESCC Secretariat has instituted an investigation against Eswatini Med
following receipt of complaints of alleged violations of the provisions of the
Competition Act.
The executive director alleged that Eswatini Med favours its own medical
practitioners in the issuance of practice numbers, over other medical service
providers, who have no business relationship with Eswatini Med’s own
facilities. According to the executive director, the second allegation is the
contravention of Section 34 read with Section 31(h) of the Act. He alleged that
Eswatini Med is abusing its dominant position by unfairly and unjustly refusing
to issue practice numbers, which are crucial for medical practitioners to remain
economically viable, to the medical practitioners and medical service providers
that have no business relationship with Eswatini Med’s facilities.
“The third allegation is a contravention under Section 34 read with Section
31(1) of the Act. Specifically, it is alleged that Eswatini Med, in refusing to
issue practice numbers to the medical practitioners and medical service
providers, is abusing its dominance and denying them access to an arrangement
crucial to competition,” the executive director said.The executive director
went on to explain that if these allegations are proven, they could constitute a
contravention of Section 34 read together with Section 31 (a), Section 31 (h),
and Section 31(i) of the Act. Furthermore, he invited members of the public,
players and stakeholders in the medical services industry, who may be in
possession of information that may be of assistance in this investigation, to
furnish such information or to make representations to it within 14 business
days, after the date of publication of the notice. “Such submissions shall be
in writing and include your contact details. The Secretariat is legally bound by
legislation on confidentiality requirements. Written submissions may be posted
by registered mail to: Eswatini Competition Commission P.O. Box 1976,
delivered
Mbabane H100, Eswatini or hand delivered to the following physical address;
Eswatini Competition Commission, Highlands View(Mountain Inn Area), Emoyeni
Road, Mbabane, Eswatini,” the executive director said in the statement.
Meanwhile, SwaziMed Chief Executive Officer (CEO) Peter Simelane, said they were
unaware of the investigation or the investigation notice. Simelane said they
cannot comment on something they do not know. He said it would be better to
comment on something they knew. He maintained that they were not aware of
anything and they had not received any formal information. Moreover, Minister
Rijkenberg responding to the MPs, admitted to the House that his ministry has
received a number of complaints from healthcare institutions and members on the
administration of SwaziMed. Rijkenberg said the complaints included that the
beneficiaries are not receiving the full benefits of their selected benefit
options from the medical aid scheme, yet the contributions are being paid
monthly.