Report fuels probe into medical schemes registrar JUST days after the Council for Medical Schemes announced it had ordered a forensic investigation into its registrar, Monwabisi Gantsho, for allegedly soliciting a R3m kickback, an earlier report has come to light raising further questions about his conduct. Gantso heads the agency charged with overseeing the R110bn medical schemes industry. In November 2012, the councils acting chairman Trevor Bailey instructed law firm Bell Dewar to investigate a series of allegations made by senior staff against the registrar. The law firms report concluded that the registrar: ignored recommendations made by a council task team for the appointment of independent curators to three different medical schemes - Bonitas, Sizwe and Medshield - and had instead appointed curators with whom he appeared to have a relationship; delayed an investigation into troubled medical scheme Medshield without justification; refused to approve the merger of Nampak Medical Scheme and Discovery Health Medical Scheme for no justifiable reason; appointed staff without following due process; and, put pressure on a junior staff member to reveal confidential minutes of meetings of the medicine pricing committee. The Bell Dewar report, which was finalised on November 27, 2012 concluded that the registrars conduct constituted an abuse of his position and authority and was in breach of the Medical Schemes Act. It urged the Council of Medical Schemes to consider requesting the Minister of Health who appointed the registrar to take disciplinary action. The council’s chairman Yosuf Veriava, appointed shortly after the investigation was commissioned, said it had considered the report and concluded disciplinary action was not needed. The council had met twice to consider the report and written responses from senior management and the registrar. The councils decision was conveyed to the Minister, who had been supplied with the report. Prof Veriava said a significant number of the reports findings were speculative and did not warrant further action. The councils administration was instructed to draft policy for the appointment of curators and the resolution of differences of opinion between staff and the registrar. The council has placed Dr Gantsho on special leave following allegations by lawyer Themba Langa, who was then provisional curator of Medshield, that he had requested a R3m kickback. The council is also investigating Langas conduct. Langas allegation against Gantsho was made in court papers on February 20 this year after the council launched legal action to remove him as curator on February 11. It said he was not doing his job properly and had concluded a dubious R10m deal to buy the Medshield trademark. The council also alleged that Langa had acted improperly by using his own law firm to do work for Medshield. In his replying affidavit, Langa said Gantsho had queried the trademark deal, which was originally pegged at R30m, only because he wanted a R3m kickback. In further papers, filed on February 24, Gantsho rejected Langas scurrilous allegations and asked why he had not reported the alleged crime. The issue of Langas curatorship was settled out of court, and he resigned last week. Tamar Kahn: Business Day
Posted on: Wed, 05 Mar 2014 10:18:39 +0000
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