Trade unions representing thousands of public servants have called for the immediate removal of Government Employees Medical Scheme (Gems) principal officer Dr Stanley Moloabi and the scheme’s executive leadership, accusing them of failing in their oversight and advisory duties amid steep contribution increases.
In a memorandum of demands submitted to Gems’ board and management on Saturday, the unions rejected the scheme’s proposed 9.5% contribution hike.
They described it as “economically unjustifiable” and a betrayal of its founding purpose as a social solidarity instrument.
The memorandum was drafted and signed by several trade unions including Hospersa, Naptosa, Natu, Nupsaw, Peu, PSA, Saou and Sapu.
“We demand the immediate removal of the principal officer, Dr Stanley Moloabi, together with the current executive leadership, on the basis that they carry the responsibility of advising the board on matters relating to contribution increases, changes to benefit options, governance and the overall administration of the scheme,” the unions said.
They said that they wanted them removed over their leadership failure.
“The continued implementation of decisions that negatively affect members reflects a failure in leadership and oversight and we therefore call for decisive action to ensure accountable and member-centred governance,” they said.
The unions said their primary grievance was what they described as a cumulative membership contribution increase of more than 23% over two years.
“The implementation of a 9.8% increase in January, reduced to a 9.5% membership contribution increase effective February 1 2026, after a 13.4% increase in 2025, represents a cumulative escalation of more than 23% over two years,” the memorandum reads.
The unions have demanded the immediate withdrawal of the 9.5% contribution increase implemented on February 1.
They are also calling for full financial transparency from the scheme.
“We demand full disclosure of detailed operational budgets, administrative expenditure line items, managed care and outsourcing contracts, executive and board remuneration packages, procurement contracts and associated costs. Workers fund this scheme. Workers have the right to full financial transparency,” they said.
The memorandum also calls for an independent forensic audit into governance practices and fraud controls.
“We demand an independent forensic audit into governance practices, procurement processes, administrative and outsourcing expenditure, fraud and leakage controls. The audit must be conducted by an independent body agreed upon with organised labour and its findings made public,” the unions said.
Nearly two decades after the establishment of Gems, the unions argue that the continued outsourcing of administrative functions should be critically reviewed.
We demand an independent forensic audit into governance practices, procurement processes, administrative and outsourcing expenditure, fraud and leakage controls.
— Unions
They are demanding a comprehensive cost-benefit analysis of all outsourced functions, clear timelines for reducing what they describe as excessive administrative overheads and a strategy to redirect funds towards direct healthcare benefits.
“Members’ contributions must prioritise health care, not bureaucracy,” they said.
The unions also called for a reversal of what they termed “unilateral changes” to the Tanzanite One benefit option, specifically opposing the introduction of down payments for hospitalisation and contribution increases exceeding 100%.
They have given Gems seven working days to respond in writing.
“We require a written response to this memorandum within seven working days of handover. Failure to provide substantive engagement and corrective action will result in escalation of collective action, including further mass mobilisation and institutional interventions,” they said.
The unions warned that failure to meet their demands would result in protests and further mass mobilisation by affected public servants.
TimesLIVE
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