Netcare aided Leoka in PhD lie

• Background check revealed inconsistencies with her CV

Netcare turned a blind eye to a verification report it commissioned before appointing Thabi Leoka as a non-executive director in 2021, which indicated her highest qualification was a master’s degree.

This astonishing admission was made by the company secretary of one of the country’s biggest private healthcare groups in response to Business Day’s questions on Thursday.

“As is standard practice within Netcare, a background check was conducted. A report by an external specialist integrity assessment firm commissioned by Netcare and received in November 2021 listed Ms Leoka’s highest qualification as an MA and MSc,” said Charles Vikisi, general counsel and group secretary of Netcare.

“In hindsight, we recognise that we should have proactively inquired why the PhD qualification, as stated on her curriculum vitae, was not reflected in the report. Regrettably, this diligence was not exercised.

“Given the recent disclosures around the integrity of Ms Leoka’s academic qualifications, it is apparent that Netcare could have and should have done more to verify the accuracy of her CV, particularly as it pertained to her PhD.”

The scandal has exposed the flaws and weaknesses in the verification processes of some of SA’s biggest companies, including Remgro, MTN SA, and Anglo American Platinum (Amplats), which count or had counted Leoka as a board member with a PhD qualification.

The scandal has damaged the reputation and trust of the companies involved, as well as the image of corporate SA, which is still reeling from the demise of Steinhoff, which destroyed billions of rand in shareholder equity, and the collapse of Tongaat Hulett into the arms of business rescue practitioners.

Vikisi added that the report concluded that Leoka was “held in high esteem” and a “consummate professional”. Leoka received excellent referrals from entities and people who said her integrity was “above reproach”.

Despite its verification report being at odds with Leoka’s CV, Netcare went on to tell shareholders and the public that she had a PhD.

“Netcare is pleased to announce the appointment of … Dr Thabi Leoka as independent non-executive director with effect from January 1 2022 …

“Dr Leoka has a PhD in economics and has worked as an economist in various financial sector firms in London and SA, and has a passion for emerging markets and African economies,” the company said in its results for the year to endSeptember 2021.

The group, worth about R20bn, again referred to Leoka as “Dr” in March 2023 when announcing her resignation.

Leoka’s claims of holding a PhD in economics from the prestigious London School of Economics (LSE) have been exposed as a lie by Business Day. The LSE has confirmed that Leoka has not been awarded a PhD by the institution.

She resigned from the Netcare board when she joined the board of Johann Rupert’s investment vehicle Remgro to avoid a conflict of interest because Remgro owns half of Netcare’s rival, Mediclinic.

During her time on the Netcare board Leoka served on the audit committee and the social and ethics committee.

Netcare on Thursday became the first entity to admit its verification processes had been inadequate. MTN SA and Amplats have not commented

on the saga.

Leoka sits on the social, ethics and transformation committee of Amplats, which in its 2022 governance report highlights the importance of integrity from its board members.

“The board sets the tone from the top and subscribes to the ethical standards detailed in the Anglo American Platinum code of conduct and business integrity policy.

“It seeks to lead by example in engaging with all stakeholders in its deliberations and decisions, and by monitoring the ethical culture and compliance in the group,” the report says.

Business Day has it on good authority that the lack of a PhD cited in Leoka’s CV is what led to her prematurely leaving the board of Remgro after serving less than eight months.

Leoka and Remgro have denied the PhD imbroglio was the reason for them parting ways, attributing the move to “personal reasons”.

However, Remgro emphasised that it had proper vetting processes in place. “Remgro’s values are central to the culture of ethical and moral behaviour and compliance. To ensure that these values are upheld, the board recognises the need to ensure rigour in the process of electing and nominating members to the directorate,” the company said in a statement.

The Institute of Directors in SA said the fallout from the Leoka debacle exposes corporate SA’s lapses in governance. “Performing due diligence on any appointment in any organisation, and especially senior appointments, is basic good governance,” it said on Wednesday.

Leoka claimed to have obtained a PhD from LSE as early as 2008, meaning she maintained the falsehood for 15 years. In this period she has held several high-profile positions in the business world. These include a role as the chief economist at Renaissance Capital and economist at Argon Asset Management, where she worked in the fixed-income and the multi-asset teams.

“Save to state that Ms Leoka left Argon’s employ in 2017, Argon does not wish to comment,” the asset manager said.

Standard Bank also refused to explain whether it had conducted due diligence before employing Leoka.

“Standard Bank is not in a position to make available confidential employment information of either former or present employees.”