COMPETITION COMMISSION INVESTIGATES SWAZIMED AFTER COMPLAINTS

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.

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