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Council probes Bonitas official for corruption  Comments

Investigation targets board, courier company and others

October 26, 2009

By SLINDILE KHANYILE


The Council for Medical Schemes is investigating Bonitas principal officer Bafana Nkosi and the board of trustees on eight allegations of corporate governance transgressions. Nkosi has been placed on special leave pending the outcome of the investigation.

Bonitas is the second-largest open scheme in the country and covers nearly 650 000 lives.

Gerhard van Emmenis, the scheme's chief operating officer, said on Friday that the investigation began in July and was initially expected to be completed this month.

The deadline had now been extended to December.

Van Emmenis said the council had in July applied in court under section 51 of the Medical Schemes Act to be granted permission to investigate Bonitas. The matter will return to court on December 15.

According to the motivation submitted in court by the council when it applied for permission to probe Bonitas's affairs, Nkosi's relationship with Pharmacy Direct, a courier pharmacy company that has a contract with Bonitas, will be investigated.

An initial inspection by the council uncovered a trip to Dubai in which officials of Pharmacy Direct took Nkosi and his wife shopping in 2005. Nkosi has supplied a confidential statement explaining this trip and indicated that he wanted to pay for the trip himself but alleges that Pharmacy Direct refused to accept payment from him.

It was discovered that no written agreement between the scheme and Pharmacy Direct existed until May 15, 2007. Prior to this there had only been a verbal agreement in place.

Bonitas first awarded the supplier a contract in 2004. The council has raised serious concerns about the scheme's commitment to proper governance and control systems.


Also being questioned is the business relationship between Nkosi and one of the executives at Pharmacy Direct and the alleged attempt by the principal officer to obtain shares from this firm.

Former board chairman Tommy Oliphant also had a relationship with Pharmacy Direct. Oliphant was sacked three months ago.

Oliphant and Van Emmenis were also taken on a trip to New York by Pharmacy Direct. Both later paid back the money for the trip to Pharmacy Direct and agreed that they should have declared it to the board.

Oliphant agreed that he had a long-standing relationship with Willem Britz, a director at Pharmacy Direct, and another member of the courier company. This relationship, however, was through a company called Introdeals that originated when Britz practised as an attorney.

Oliphant was never a director at Introdeals but continued to receive monthly commissions from Introdeals and did not initially declare this to the Bonitas board.

Other allegations being investigated against Nkosi relate to overpayment to Virtual Care, a former supplier to Bonitas.

Also being probed is Nkosi's interest in Prescient Investment, Nkosi's relationship with an owner of a brokerage firm which was allocated Bonitas members, the establishment of a new marketing company, and the scheme's investments in Louis Pasteur hospital, Clinix, and Clansthal Development and Pegma 36.

Van Emmenis said the investigation had no immediate impact on members or on the day-to-day running of the scheme. He said he did not believe the scheme would be placed under curatorship.

The council could not be reached for comment by the time of going to press.
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Showing page 1 of 1 comment pages, 6 total comments
13 Weeks ago Anonymous wrote :
Approximately 4-5 years back an Optical Management contract was awarded to PPN (Pty)Ltd..This contract was never put to tender nor were any alternatives investigated. It has possibly cost Bonitas millions in excessive payments.
15 Weeks ago Grim Reaper wrote :
If only the super-corrupt idiots of this country could know what is heading in their direction right now, they would turn and run for their their lives without even a single backward glance. Unfortunately, however, to run is not going to help them; this because they are already on a torpedoed ship that is rapidly sinking and rapidly being approached by hate-crazed, starving masses who are hell-bent on eating the fat, overfed passengers alive. Maybe, just maybe there is still time to take a course in walking on water, bearing in mind that the expert, totally trustworthy teacher ACcannot be paid with filthy, stolen money. He will only accept everything you possess, - and all you have to offer Him is you, and that means all of you, - body and soul! Maybe there is still time to make a real quality decision; but maybe it could already be too late.
15 Weeks ago Dei Lucrii wrote :
It looks as if the CEO Van Emmenis is blowing the whistle - the question is Why? The old chestnut - "When thieves fall out" really does succintly describe conditions in our country today. Its a case of "same old - same old". One of the old Sunday Express sport's editors ,Sam Mervis once said - "There is no new news - we've seen it all before!" However, the situation in our country is now becoming not only embarrasing but also extremely serious. Everyone cannot continue stealing money, accepting bribes, and generally acting in an incompetent and reckless manner in big business. Soon we'll be looking at a bankrupt country.
15 Weeks ago Anonymous wrote :
The private sector corruption in SA is as great as public sector's but the latter receives more publicity. All regulatory authorities need to wake up and tighten up efore we experience the meltdown we say we avoided.
15 Weeks ago Nkalakatha wrote :
They are busy filling their pockets , before the new National Health Plan kicks in !! There is only going to be ONE health- body in SA and all these medical -aid companies are going to be gone in no time....... !!!
15 Weeks ago Anonymous wrote :
And what did the Chief Operating Officer know...........????????
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