SSC prepares to manage N$1b PSEMAS

The Social Security Commission (SSC) is assessing its readiness and institutional capacity to take over the claims management function of the Public Service Employees Medical Aid Scheme (PSEMAS) following a Cabinet directive.

Methealth Namibia Administrators, which has overseen the scheme since 2004, remains the current administrator following the extension of its contract for another year.

According to an internal communication signed by SSC executive officer Milka Mungunda on 28 January and shared with staff, the process involves high-level stakeholder engagements and internal capability assessments to determine whether the Commission can assume responsibility for administering claims.

"This development represents a potential expansion of our mandate and service delivery. It also presents opportunities for job security, new skills acquisition, possible new career paths for staff, and employment creation for Namibians at larger," Mungunda said.

An SSC official, who asked not to be quoted and referred Namibian Sun to Mungunda, confirmed that discussions are underway.

“We are discussing the matter and nothing has been finalised yet,” the official said.

Mungunda was unreachable on her two listed numbers yesterday.

While internal SSC communication suggests that engagement is already advanced at an institutional level, the government has maintained that the process remains evaluative rather than final. Any transfer of responsibilities would depend on the outcome of a feasibility assessment, demonstrated institutional readiness and formal Cabinet approval.

If approved, the transfer of PSEMAS claims administration would represent a major institutional shift in Namibia’s social protection architecture, expanding SSC’s mandate beyond its current scope.

Internal information shared with SSC employees indicates that, if implemented, the move would draw the Commission deeper into the administration of public-sector health benefits.

Claims management is a core operational function that involves benefit adjudication, payments, compliance oversight, data systems, and client services, requiring substantial institutional, technical, and human resource capacity.

Institutional challenges

The Social Security Commission also confirmed plans to operationalise the National Medical Benefit Fund (NMBF) in 2026 as part of its strategy to expand Namibia’s social protection net.

The NMBF is intended to provide medical benefits to contributors, particularly workers who are not adequately covered by private medical aid schemes.

The Commission acknowledged that rolling out the NMBF presents operational and institutional challenges, and it framed the process as an opportunity to build resilience, develop internal capacity and enhance service delivery.

Cabinet directive

Finance ministry spokesperson Wilson Shikoto confirmed yesterday that the Cabinet had only directed the ministry and relevant stakeholders to explore and assess SSC’s viability and capability to administer and manage claims for the scheme.

Shikoto stressed that no formal decision has been taken for SSC to assume control of PSEMAS.

“I am aware of the study to see if SCC can manage the fund,” Shikoto said.

Although he could not provide an exact figure, Shikoto said the PSEMAS budget exceeds N$1 billion.

The Cabinet directive comes amid ongoing procurement uncertainty around the administration of PSEMAS. The Central Procurement Board of Namibia closed a tender in September 2025 for a proposed five-year administration period.

Six companies – Prosperity Health, Cimco Health, Methealth, Medscheme and Methealth Namibia Administrators – submitted bids. According to Shikoto, the procurement process remains ongoing.

Troubled past

PSEMAS has faced a long and contentious procurement history. In early April 2019, then finance minister Calle Schlettwein announced that the contract to administer the scheme had been extended for a year, until 31 March 2020.

By the end of March 2020, the tender process had still not been finalised, resulting in a further short-term extension of the contract.

On 4 June 2020, the PSEMAS administration tender, reference number NCS/ONB/CPBN-03/2020, was finally advertised, with a closing date of 22 July 2020.

It was at this point that serious concerns began to surface.

In early July 2020, Republikein reported that one of the potential bidders, Prosperity Health’s Bertus Struwig, had raised concerns about the tender's design. Struwig alleged that the specifications had been structured to favour the incumbent administrator, Methealth Namibia Administrators.

The allegations pointed to possible corruption at the tender design stage, raising questions about whether the process had been engineered to ensure that the contract was awarded to a specific firm.

In December 2020, the Central Procurement Board of Namibia cancelled the PSEMAS administration tender after bidders were found to be non-responsive, largely due to non-compliance with the Public Procurement Act's ownership requirements.