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STU Flash, 2 September 2013

09/02/2013 STU NEWS created by STU Secretariat

MBF about to be hijacked

STU/65th Council/13/005
2 September 2013

 

The participants in the Medical Benefits Fund have been invited to the Extraordinary General Assembly to be held on 4th September 2013, 13:00 to 15:00, Room XI.

STU urges all staff to attend this Assembly which could affect adversely their short and long term health insurance.

The purpose of the Assembly is to review and to approve the proposed amendments to the provisions of Sections V, VI and VII of the Fund’s Rules which concern the governance of the Fund.

As an observer in the Board of Management of the Fund, STU has been following this process. However, the STU cannot endorse the proposed amendments. You as staff can have your voice heard!

Changes are being presented to participants very precipitously, leaving no time for in- depth reflection on such important matters. The following considerations have been put forward by STU to the Board of Management:

 

  1. 36C/Resolution 99 invited the Director-General to review the governance of the Fund [………] with regard to the need to enhance its expertise and independence. The Resolution does not specify independence of whom or what. The fact is, however, that rather than enhancing the Fund’s independence, the proposed reform reduces it by concentrating control in the newly established Coordinator within the Secretariat who would not be responsible to any control other than that of senior management.
  2. The new management structure is in contradiction with the objective of the Fund, as an autonomous health-insurance scheme. Decisions affecting participants could be taken without their consent.
  3. The new management structure contains no checks and balances.
  4. With regards to expertise, existing Article 5.2.7 specifically foresees this. The issue, however, is the choice of the consultant and his or her terms of reference. Nothing in the provisions concerning the External Subject Matter Expert indicates that his/her existence would enhance the Fund's expertise.
  5. STU has requested a cost benefit analysis of the proposed reform.

 

Let's join forces, join STU!