Claim of R3m ‘kickback’ at medical council
THE Council for Medical Schemes, which governs how aids are run, has launched a forensic investigation into claims that its top official, Monwabisi Gantsho, asked for a R3-million kickback.
The allegations relate to Medshield, one of this country’s biggest schemes with 174 000 members, which the council put into curatorship in 2012 when allegations emerged of medical aid cash being squandered.
High-profile lawyer Themba Langa was appointed provisional curator.
But in new court papers lodged this week, Langa accused Gantsho of asking for a R3-million kickback and stipulating two bank accounts into which the money should be deposited.
Langa, who previously acted as chairman of the Land Bank, quit as the provisional curator of Medshield this week, saying: “I have done my job.”
But the court papers show that Gantsho launched a court bid last month to have Langa removed as a curator, arguing that he had not done his job properly and had concluded a dubious R10-million deal that was “of no discernible benefit” to the medical aid scheme’s members.
In November, Medshield bought the trademarked name “Medshield” for R10-million from a company called Alumni 264. The Council for Medical Schemes, through Gantsho, raised concerns about the deal, saying that “spending R10-million for a worthless trademark is not incurring a reasonable expense”.
This was one reason why the council wanted Langa removed as curator. It also said that the lawyer “exhibits an emotional immaturity [that] is worrisome, bearing in mind that he is in control of R1.2-billion in public funds” at Medshield.
Gantsho accused Langa of launching a “scurrilous and defamatory attack on wellrespected employees of the council”, saying that it would be better for medical aid members if he were removed.
But in his reply, Langa said Gantsho queried the R10-million trademark deal — originally a R30-million transaction — only because he wanted a R3-million kickback from it.
“[Gantsho] is motivated by greed and corrupt tendencies that imbues him to seek to appoint another provisional curator, so that he could manipulate the resources of Medshield,” Langa said in an affidavit.
“[Gantsho] provided two accounts, and instructed me to deposit money therein for his benefit. [He] impressed it upon me that he has tax problems to settle.”
Unbeknown to Medshield’s members, ill-tempered letters have been flying between the council and Langa for weeks, leading to his resignation this week.
In one letter, Langa accused the council of being “chronically biased and hateful against me”, and of being “desperate to fabricate falsehoods”.
He said the council had no business getting involved in the trademark deal: “The regulator should regulate and not pick fights about business decisions that do not concern [it].”
On January 27, Gantsho sent Langa a letter telling him he had to resign as curator within two days or the council would go to court to remove him.
The court papers said that unless there was proper leadership at Medshield “the lives of 174 000 beneficiaries would literally be at risk”.
But Langa argued that, under his watch, Medshield had stabilised. From losing members, it now had R2-billion in reserves and a solvency rate of 40%.
On Friday, the council confirmed that it had launched an investigation into claims against Gantsho — and was also investigating “irregularities” in Langa’s conduct.
Though Gantsho is not at the council’s Pretoria offices at the moment, he has apparently not been suspended. Gantsho said he was going to an “educational conference” planned long ago. He did not respond to further requests for comment about the alleged R3-million bribe.