IFAF challenges Tshwane’s single Medical Aid broker tender

 The municipality faces criticism from IFAF over its plan to appoint a single medical aid broker for employees.
image:  Tshwane Page

by Kelebogile Matlou

The Independent Financial Advisors Forum (IFAF) attacked the City of Tshwane for proceeding with a contentious procurement to select a single medical assistance broker for municipal employees, highlighting concerns about legality, consent, and employee rights.

 The non-profit organization that represents accredited brokers originally expressed concerns in August, claiming that the marketed contract is irregular and unconstitutional. IFAF argues that the tender violates workers’ rights to choose their preferred medical aid provider and threatens both competition and service quality.

 IFAF Deputy Chairperson Buti Sigasa reported a significant interaction during the mandatory briefing on August 26th, when the forum inquired whether the city had obtained employee or representative permission for the arrangement. “The answer was no.According to Regulation 28-7, the city requires consent to act as an agent in appointing a broker,” he said. 

According to IFAF, the lack of mandatory permission leaves the city of the capacity to centralise broker appointments. The group also warns that restricting employees to a single broker may reduce competition, limit choice, and potentially damage pricing and service quality.

While city officials have not to reply publicly, proponents of the tender argue that a single broker may streamline administration, cut inefficiencies, and better monitoring of benefits for Tshwane’s large workforce. Critics argue that the decision violates regulatory rules intended to protect employee rights and ensure transparent procurement. 

The standoff has increased scrutiny of Tshwane’s procurement practices, fueling broader discussions about governance, transparency, and the balance between efficiency and employee autonomy in workplace benefits.