Johannesburg - Liberty Group, part of Liberty Holdings [JSE:LBH], on Thursday evening denied allegations of misappropriation, fraud or corruption on the part of one of its associated companies, V-Med Administrators.
Liberty Medical Scheme (LMS) earlier confirmed that it has laid criminal charges against V-Med Administrators' managing director Patrick Masobe, ex Registrar of Medical Schemes, for alleged fraud, alternatively misappropriation of funds, alternatively theft of funds.
Ms Christine Kinsman, vice chairperson, trustee and member of LMS, said: "We have a fiduciary duty to report conduct of this nature and we cannot, under any circumstances, endorse misappropriation of funds.
"The unlawful withdrawal of more than R11m from LMS' accounts constitutes a criminal action perpetrated against our members."
However, Liberty Group on Thursday evening rejected the claims.
Spokesperson, Mandy Denton, said: ""Any allegation of misappropriation, fraud or corruption is denied. The matter referred to by Christine Kinsman involves a contractual dispute between Liberty Medical Scheme and the administrator, V-Med. The contractual dispute will follow its normal course through an arbitration process in terms of the contracts."
Although V-Med is mandated to effect authorised transactions based on valid instruction, or within operating mandates from the LMS bank account, V-Med's officers were specifically and legally instructed not to make payment for transfers relating to certain fees, Kinsman said. V-Med's officers however apparently ignored this written instruction, and in contravention thereof proceeded to effect withdrawals from LMS' bank accounts which amount to fraud, alternatively unlawful misappropriation, or alternatively theft of LMS funds, she said.
Three withdrawals of more than R3m were made since November last year.
Despite attempts from LMS to obtain information from V-Med regarding the withdrawals and transfers, V-Med have failed to provide any details or meaningful explanation, LMS said.
"The board's determination to recover these amounts in line with sound business practices, is aimed at ensuring that this incident will have no material impact on LMS", Kinsman said.
"This situation is most unfortunate and highlights V-Med's unbecoming conduct as administrators who are accredited by the Council for Medical Schemes. We are however confident that the judicial process and necessary investigations will be conducted with appropriate action being implemented and the members money being returned to the Scheme," she added.
Liberty Medical Scheme (LMS) earlier confirmed that it has laid criminal charges against V-Med Administrators' managing director Patrick Masobe, ex Registrar of Medical Schemes, for alleged fraud, alternatively misappropriation of funds, alternatively theft of funds.
Ms Christine Kinsman, vice chairperson, trustee and member of LMS, said: "We have a fiduciary duty to report conduct of this nature and we cannot, under any circumstances, endorse misappropriation of funds.
"The unlawful withdrawal of more than R11m from LMS' accounts constitutes a criminal action perpetrated against our members."
However, Liberty Group on Thursday evening rejected the claims.
Spokesperson, Mandy Denton, said: ""Any allegation of misappropriation, fraud or corruption is denied. The matter referred to by Christine Kinsman involves a contractual dispute between Liberty Medical Scheme and the administrator, V-Med. The contractual dispute will follow its normal course through an arbitration process in terms of the contracts."
Although V-Med is mandated to effect authorised transactions based on valid instruction, or within operating mandates from the LMS bank account, V-Med's officers were specifically and legally instructed not to make payment for transfers relating to certain fees, Kinsman said. V-Med's officers however apparently ignored this written instruction, and in contravention thereof proceeded to effect withdrawals from LMS' bank accounts which amount to fraud, alternatively unlawful misappropriation, or alternatively theft of LMS funds, she said.
Three withdrawals of more than R3m were made since November last year.
Despite attempts from LMS to obtain information from V-Med regarding the withdrawals and transfers, V-Med have failed to provide any details or meaningful explanation, LMS said.
"The board's determination to recover these amounts in line with sound business practices, is aimed at ensuring that this incident will have no material impact on LMS", Kinsman said.
"This situation is most unfortunate and highlights V-Med's unbecoming conduct as administrators who are accredited by the Council for Medical Schemes. We are however confident that the judicial process and necessary investigations will be conducted with appropriate action being implemented and the members money being returned to the Scheme," she added.