New executives sought for Bonitas

Johannesburg - The Council for Medical Schemes (CMS) will push for Bonitas Medical Fund to be under curatorship until the 600 000-member scheme has appointed new management.

CMS spokesperson Aleksandra Serwa said on Wednesday the intention was to replace the existing board, after the council filed papers with the South Gauteng High Court on Tuesday to place Bonitas under curatorship. Bonitas is the third-largest medical scheme in South Africa.

"It [application for curatorship] is a mere technicality and there is no reason to panic; claims will continue to be paid," Serwa said, confirming comments made by acting CMS registrar Craig Burton-Durham who said the period of curatorship will not last long.

Serwa said the media has recently highlighted question marks over corporate governance at Bonitas, which caused uncertainty among policy-holders.

'Improper' goings-on

"We as the council wanted to be seen as pro-active in this issue," Serwa said.

The CMS compiled a damning report on corporate governance issues at Bonitas in 2009, criticising principal officer Bafana Nkosi and the board of trustees.

It included details about unauthorised trips taken by Nkosi to Dubai and New York, and a trip to New York by CEO Gerhard van Emmenis, as well as improper relationships with suppliers and subsidiaries.

It was alleged, among other things, that Nkosi had tried to secure shares in supplier Pharmacy Direct, with whom Bonitas has a major supply contract for the distribution of medicine.

Staff at Bonitas referred Fin24.com's queries to Van Emmenis, who was unavailable as he was in a board meeting.

- Fin24.com