JOHANNESBURG (Reuters) &#8211; South Africans are paying too much for private healthcare, the country’s antitrust watchdog said on Thursday, adding patients are sometimes prescribed treatments they don’t need by an industry with limited competition.
Presenting its findings of a four-year investigation into the sector, the Competition Commission said private health providers sometimes recommended pricey treatments unnecessarily.
“This happens, for example, if a doctor orders more tests than are absolutely necessary or conducts a Caesarean section when it is not absolutely necessary to do so,” said Sandile Ngcobo, a former chief justice who headed the Commission’s investigating panel.
The findings could boost health minister Aaron Motsoaledi’s efforts to cut costs for patients as the government works towards implementing a nationwide medical insurance plan that aims to give the poor greater access to healthcare.
South Africa spends roughly 9 percent of gross domestic product on healthcare but more than half of that is spent by about 16 percent of the population with private medical schemes, according to the health department.
The inquiry also found there was limited competition in both the healthcare insurance and the private hospital markets.
South Africa’s private hospital industry is dominated by Mediclinic International, Life Healthcare and Netcare, while the medical insurance sector counts Discovery Ltd , Liberty Holdings and MMI Holdings among the biggest players.
“One of the challenges of this, from a competition perspective, is that it affords the big-three hospital groups “must-have” status in bargaining for contracts with funders which reduces funders’ countervailing power,” Ngcobo said.
To address the concentration, the Commission proposed divestments and imposing a moratorium on issuing new licences to the three large hospital providers until such time as their national market share is no higher than 20 percent.
It also proposed setting up a regulator to set tariffs for health services after extensive consultation with stakeholders in a public forum.
South Africa already uses a regulator to set the price of electricity, the bulk of which is supplied by utility Eskom.
Stakeholders have until Sept. 7 to comment on the findings and proposed recommendations.
Ngcobo and his team will consider the comments and, if necessary, revise the report. The final report and recommendations are expected to be published by the end of November.
Reporting by Tiisetso Motsoeneng; Editing by Mark Potter

Watchdog finds that South Africans are paying too much for private healthcare, here’s why…

JOHANNESBURG
The South African parliament will launch a court challenge against an anti-graft watchdog&#8217;s recommendation of constitutional changes to alter the mandate of the central bank, it said.
The legislative assembly joined the central bank and lender Barclays Africa in seeking a court review of Public Protector Busi Mkhwebane&#8217;s proposal to change the central bank&#8217;s primary mandate of maintaining currency and price stability to focus on economic growth.
&#8220;Parliament believes that the remedial action (mandate change), which is binding in terms of the law, usurps the powers of the institution under the Constitution,&#8221; it said in a statement posted on its website.
&#8220;Parliament will accordingly initiate a court application to have this remedial action set aside on the basis of its unconstitutionality.&#8221;
Mkhwebane made her proposal to a Pretoria news conference on Monday where she delivered her findings on an apartheid-era bailout of Barclays Africa Group. The lender has denied any wrongdoing.
Her call threatens to further stain South Africa&#8217;s image as an investor-friendly emerging market, coming less than a week after mines minister Mosebenzi spooked investors by raising the minimum threshold for black ownership of mining companies to 30 percent from 26 percent.
The independence row over the South African Reserve Bank has also highlighted divisions within the tripartite alliance of the ruling African National Congress, the country&#8217;s biggest union, Cosatu, and the South African Communist Party.
Both the ANC and the communist party are opposed to constitutional changes aimed at altering the role of the central bank while Cosatu backed calls for amendments.
(Reporting by Tiisetso Motsoeneng)
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South African parliament opposes calls to change central bank mandate

JOHANNESBURG (Reuters) &#8211; South Africa&#8217;s central bank said on Tuesday a recommendation by the Public Protector to change the constitution to promote growth was unlawful and would hit the regulator&#8217;s independence by stripping it of its key aim to protect the currency.
&#8220;The Reserve Bank has consulted its legal team and has been advised that the remedial action prescribed by the Public Protector falls outside her powers and is unlawful,&#8221; it said in a statement.
It would take urgent legal action, it added.
On Monday, Public Protector Busisiwe Mkhwebane proposed a change to the bank&#8217;s mandate as part of her findings on an apartheid-era bailout of a bank that was subsequently bought by Absa, now a unit of Barclays Africa Group.
http://cnbc.africa/news/financial/2017/06/19/barclays-africa-says-no-obligation-pay-sa-govt/
(Reporting by Mfuneko Toyana; Editing by Ed Cropley)
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South Africa central bank hits back against Public Protector

South Africa&#8217;s rand fell more than 1.5 percent on Monday after Public Protector Busisiwe Mkhwebane recommended changes to the constitution to force the central bank to promote economic growth rather than currency and price stability.
By 1222 GMT, the rand was trading 1.44 percent weaker to the dollar at 12.9900, having hit 13.0075.
Mkhwebane said at a news conference that the primary objective of the South African Reserve Bank should be to promote balanced and sustainable economic growth, rather than to target inflation, as it is now.
It is unclear why Mkhwebane, a constitutionally mandated anti-corruption watchdog, should have made the comments, which alarmed currency traders.
&#8220;They want to initiate changes to alter the primary objective of the Reserve Bank. Some of the suggestions being to remove the reference to protect the value of the currency and all this has caused a knee-jerk reaction,&#8221; said Andre Botha, Treasury One currency dealer.
(Reporting by Tanisha Heiberg and Olwethu Boso; Writing by James Macharia; Editing by Ed Cropley)

S.Africa’s rand weakens 1.5 pct after watchdog comments over cenbank

JOHANNESBURG (Reuters) &#8211; South Africa&#8217;s anti-corruption watchdog will oppose President Jacob Zuma&#8217;s court bid to set aside an influence-peddling report, Public Protector Busisiwe Mkhwebane said on Monday.
The Public Protector, a constitutionally-mandated watchdog, released the report in November last year, after an extensive probe over allegations of influence-peddling against Zuma, whose administration has been marred by scandals.
The carefully worded report by Thuli Madonsela, Mkhwebane predecessor, stopped short of asserting that crimes had been committed and called for a judge to investigate the allegations. Zuma has denied any wrongdoing, and is challenging the Public Protector&#8217;s report in court.
(Reporting by Tiisetso Motsoeneng; Writing by Ed Stoddard; Editing by James Macharia)

South Africa watchdog to oppose Zuma bid to set aside influence peddling report

South Africa&#8217;s competition regulator has decided against pursuing a complaint of unfair pricing lodged against mobile phone giants MTN Group and Vodacom by smaller unlisted rival Cell C.
Cell C made the complaint with the Competition Commission in 2013, accusing MTN and Vodacom of discriminatory pricing because its larger rivals made it cheaper for users to call customers on the same network but charged a premium for calls to other networks.
&#8220;The Commission found that it would be unlikely to succeed in a prosecution of the specific conduct subject to Cell C&#8217;s complaint,&#8221; it said in a statement.
However, the Commission, which investigates cases and makes remedial recommendations to the Competition Tribunal, said Vodacom and MTN&#8217;s pricing strategies made it difficult for late entrants like Cell C to compete effectively.
It said there was a need to look more broadly into the state of competition in the South African telecoms market and would discuss possible regulatory interventions with the Independent Communications Authority of South Africa, the industry watchdog, to make the market competitive.
(Reporting by Tiisetso Motsoeneng; Editing by Greg Mahlich)

S.Africa’s competition watch says not pursuing pricing complaint against MTN, Vodacom

South Africa&#8217;s Competition Commission said on Sunday that it had asked the Competition Tribunal to fine construction materials group Afrimat for allegedly &#8220;abusing its dominance by charging excessive prices.&#8221;
&#8220;The Commission is seeking an order from the Tribunal declaring that Afrimat &#8230; must pay the maximum fine allowable by law which amounts to 10 percent of its annual turnover in South Africa as well as its exports from the country,&#8221; the Commission said in a statement.
A unit of Afrimat supplies the main ingredient in clinker bricks, which are mostly used in the construction of low-cost housing units, known as RDP houses in South Africa.
<blockquote>&#8220;The Commission has found that Afrimat abused its dominant position from 2012 until at least 2016 (the conduct may be ongoing) by charging clinker bricks&#8217; manufacturers excessive prices to the detriment of consumers,&#8221; the Commission said.</blockquote>
Afrimat could not immediately be reached for comment.
(Reporting by Ed Stoddard; Editing by Susan Fenton)

South Africa watchdog seeks fine against Afrimat for excessive prices

Shares in South Africa&#8217;s banking index extended losses on Monday as investors continued to digest the competition watchdog&#8217;s recommendation that banks should be fined for rigging the rand currency.
South Africa&#8217;s Competition Commission said last week it had found that more than a dozen local and foreign banks including Barclays Africa (Absa) and Standard Bank colluded to coordinate trading in the South African and U.S. currencies.
The Johannesburg Stock Exchange&#8217;s banking index extended losses to 1.54 percent to 7,473 points by 1200 GMT, its lowest level since Feb. 10, before the forex rigging announcement.
&#8220;There is more and more concern about what has happened with these banks colluding on this rand trading that took place,&#8221; said Cratos Capital equities trader Greg Davies. &#8220;It might be investors deciding to sell their shares in case there are very big fines from the authorities.&#8221;
In the case of the alleged rigging of the rand, the antitrust watchdog said it had recommended fines amounting to 10 percent of the banks&#8217; South African annual revenues to the country&#8217;s Competition Tribunal, which adjudicates on the commission&#8217;s findings.
Details of Finance Minister Pravin Gordhan&#8217;s budget speech on Wednesday will also be the next likely trigger for price moves, trader at Global Trader Paul Chakaduka said.
&#8220;Leading up to the budget we should see pressure on the financials without a doubt,&#8221; Chakaduka said.
 
(Reporting by Nqobile Dludla; Editing by Ed Stoddard)﻿
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S.African banking shares extend losses after watchdog charges

South African banks accused of rigging rand currency dealing should be punished if a report by the competition watchdog is true, the National Treasury said on Thursday.
&#8220;We view this matter in a very serious light and welcome any steps taken against wrong-doing by any financial institutions,&#8221; the treasury said in a statement.
The Competition Commission said on Wednesday it had found the banks, including U.S., European, Japanese and Australian lenders, had colluded to coordinate their trading activities when dealing in the South African and U.S. currencies.
 
(Reporting by Mfuneko Toyana)﻿

S.Africa Treasury says banks should be punished if currency rigging is true

A South African police watchdog has recommended that suspended national commissioner Riah Phiyega be deemed unfit to hold office and dismissed, the City Press weekly newspaper reported on Sunday.
Phiyega was the country&#8217;s top-ranking police official when police killed 34 striking workers near Lonmin&#8217;s Marikana mine in 2012.
She was suspended by South African President Jacob Zuma last year pending an inquiry into allegations of misconduct.
Reuters was not able to contact Phiyega for immediate comment but her lawyer, Sandile July, told the eNCA channel: &#8220;We have no idea what is in the report&#8221;, declining to make further comment.
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The police shootings were South Africa&#8217;s worst since the end of apartheid and have become known as the &#8220;Marikana massacre&#8221;.
The Democratic Alliance, the official opposition party, said in a statement that the report recommending Phiyega&#8217;s dismissal should be produced in parliament, adding that reports indicated that it has been ready since November 13.
Zuma appointed Phiyega in June 2012, after sacking her predecessor Bheki Cele over the irregular signing of a lease for a new police headquarters worth nearly $100 million.
Cele&#8217;s predecessor, Jackie Selebi, also did not complete his term after he was convicted of corruption and sentenced to 15 years in prison. He died last year while on medical parole.﻿

S.Africa watchdog says police commissioner should be dismissed

South Africa&#8217;s President Jacob Zuma will challenge a report released this month by the anti-corruption watchdog that alleged influence-peddling in his government, his office said on Friday.
The president&#8217;s office said in a statement that Zuma had received legal advice to challenge the report, which also prescribed that a judicial inquiry be set up to probe the allegations against him. Zuma denies any wrongdoing.﻿

South Africa's Zuma to challenge public protector's report

South African President Jacob Zuma on Thursday appointed Busisiwe Mkhwebane as the new Public Protector, a constitutionally mandated anti-corruption watchdog.
Mkhwebane, a lawyer whose most recently held a position at the State Security Agency, replaced Thuli Madonsela, a popular figure with the public who led an investigation into improper state spending on Zuma&#8217;s country home.﻿

South Africa's Pres. Zuma appoints new Public Protector

Nigeria&#8217;s telecoms regulator has shut the offices of Nokia-Alcatel for operating in Africa&#8217;s largest economy without the necessary permit, the watchdog said on Friday.
The Nigerian Communications Commission&#8217;s (NCC) spokesman Tony Ojobo said that the mobile telecoms equipment manufacturer had failed to obtain the 2 million naira ($6,349) licence required for the sale and installation of network equipment.
The head of Nokia&#8217;s Nigerian operations said the company was in talks with the NCC to secure the licence and that its offices would reopen imminently.
Nokia-Alcatel had applied for the licence about three months ago but had not completed the process, a separate NCC source said, adding that the company had operated without the permit for some time.
Nokia-Alcatel&#8217;s office will be reopened after they comply, he said.
($1 = 315.00 naira)

Nigerian watchdog closes Nokia-Alacatel's local offices

South Africa&#8217;s parliament on Wednesday approved high-level civil servant Busisiwe Mkhwebane&#8217;s nomination to replace outgoing Thuli Madonsela as Public Protector, a top anti-corruption position whose findings have vexed President Jacob Zuma.
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Mkhwebane, 46, a lawyer whose most recent job was with the State Security Agency (SSA), has also worked as a director at Home Affairs and as an immigration official in China.
Madonsela led high-profile investigations that subjected Zuma and other government officials to unwelcome scrutiny.
Mkhwebane&#8217;s nomination was approved with 263 votes in favour, 79 against and 1 abstention. Her name will now go to Zuma for his assent, which is likely after she was backed overwhelmingly by the ruling African National Congress.
If approved, she would replace Madonsela, whose seven-year, non-renewable term ends in October. The Public Protector position has a constitutional mandate to investigate misconduct and abuse in state affairs.
The opposition Democratic Alliance (DA) declined to support Mkhwebane due to her work with the SSA, which has responsibility for civilian intelligence operations, saying this could prevent her from taking on cases implicating senior government officials.
&#8220;The Public Protector cannot be seen to be even remotely connected to the State Security Agency,&#8221; Glynnis Breytenbach, the DA&#8217;s shadow minister of justice said without elaborating.
Corruption Watch, a local NGO that focuses on graft issues, applauded the parliament committee that recommended Mkhwebane, said in August it was satisfied &#8220;that the final candidate got the job on merit and not for any other reason&#8221;.
During her interview in August, Mkhwebane said she was apolitical, had no criminal record and was unbiased.
Analysts said Mkhwebane &#8211; who has worked as a senior investigator in the Public Protector&#8217;s office &#8211; will have a tough act to follow.
Madonsela won acclaim for investigating major scandals in Africa&#8217;s most industrialised country.
&#8220;Her integrity will be tested immediately,&#8221; said political analyst Nic Borain.
&#8220;There are cases looming, the most obvious one is the state capture allegations, and quite soon her ability to stand above the politics of her job will be tested very quickly and we have to wait and see how she performs.&#8221;
In one of her most high-impact investigations in 2014, Madonsela found Zuma had included in a $16 million &#8220;security upgrade&#8221; to his rural Nkandla home a raft of non-security items including a swimming pool and amphitheatre.
She said Zuma should pay back the cost of those items, and her view was supported in March by South Africa&#8217;s highest court, which said Zuma had broken the law by ignoring Madonsela&#8217;s order. Zuma has since said he will pay back some of the money.
Madonsela has said she is investigating whether Zuma allowed a wealthy business family, the Gupta family, to decide on cabinet appointments. Both Zuma and the Guptas have denied the accusations made by the opposition.﻿

watchdog

Watchdog finds that South Africans are paying too much for private healthcare, here’s why…

South African parliament opposes calls to change central bank mandate

South Africa central bank hits back against Public Protector

S.Africa’s rand weakens 1.5 pct after watchdog comments over cenbank

South Africa watchdog to oppose Zuma bid to set aside influence peddling report

S.Africa’s competition watch says not pursuing pricing complaint against MTN, Vodacom

South Africa watchdog seeks fine against Afrimat for excessive prices

S.African banking shares extend losses after watchdog charges

S.Africa Treasury says banks should be punished if currency rigging is true

S.Africa watchdog says police commissioner should be dismissed

South Africa's Zuma to challenge public protector's report

South Africa's Pres. Zuma appoints new Public Protector

Nigerian watchdog closes Nokia-Alacatel's local offices

South Africa's parliament approves ex-diplomat as Public Protector

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watchdog

Watchdog finds that South Africans are paying too much for private healthcare, here’s why…

South African parliament opposes calls to change central bank mandate

South Africa central bank hits back against Public Protector

S.Africa’s rand weakens 1.5 pct after watchdog comments over cenbank

South Africa watchdog to oppose Zuma bid to set aside influence peddling report

S.Africa’s competition watch says not pursuing pricing complaint against MTN, Vodacom

South Africa watchdog seeks fine against Afrimat for excessive prices

S.African banking shares extend losses after watchdog charges

S.Africa Treasury says banks should be punished if currency rigging is true

S.Africa watchdog says police commissioner should be dismissed

South Africa's Zuma to challenge public protector's report

South Africa's Pres. Zuma appoints new Public Protector

Nigerian watchdog closes Nokia-Alacatel's local offices

South Africa's parliament approves ex-diplomat as Public Protector

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