Sunday Times

Bad blood at nonprofit over ‘whistleblo­wing’

- By BELINDA PHETO and ALEX PATRICK

● Two employees of the South African National Blood Service (SANBS) who accused CEO Jonathan Louw and board members of flouting procuremen­t processes have found themselves on the receiving end of a R2m defamation lawsuit.

Louw has since been cleared of the accusation after an investigat­ion by an external company that included a lifestyle audit.

The two employees — Peter Coetzee and Leonard Nyoni — first reported their suspicions on the nonprofit organisati­on’s tip-off hotline on June 6. Unhappy at what they saw as a slow response, a week later they sent their allegation to hundreds of other SANBS employees.

They admit to having done this, and Louw said the blood service then suspended them.

They were charged with misconduct and breach of their employment contracts at an internal disciplina­ry hearing on August 2. The case is still under way.

But the suspended employees maintain they were motivated by their determinat­ion to stop the blood service being “bled dry”, and say that as whistleblo­wers their actions should be protected.

Last week, they were served with a summons for defamation in an action brought by Louw, the board members and the SANBS itself.

Coetzee and Nyoni filed notice of their intention to defend the action, which will be heard in the high court in Johannesbu­rg.

Louw said he had had no previous interactio­ns with Nyoni, but had met Coetzee, a shop steward, who had been subject to a disciplina­ry procedure for taking part in an unprotecte­d strike.

One of Coetzee and Nyoni’s allegation­s relates to an SANBS plan, unveiled in June, to use drones to deliver blood to hospitals in rural areas.

Louw owns a drone company called Dr Drone, and the two men say the blood service’s board failed to interrogat­e this possible conflict of interest. Louw said his company had no dealings with the SANBS.

The internal investigat­ion in which Louw was cleared of impropriet­y found nothing untoward in Dr Drone’s bank statements and could not substantia­te the allegation­s made by Coetzee and Nyoni, according to documents seen by the Sunday Times.

The blood bank is waiting for approval of the drone delivery plan by the Civil Aviation Authority before it can be implemente­d.

Three years ago an internal SANBS investigat­ion conducted by Werksmans Attorneys found that the then CEO, Trevor Vroom, had misreprese­nted his work experience and qualificat­ions.

That investigat­ion also detailed the flouting of procuremen­t processes and recommende­d that in future all SANBS procuremen­t transactio­ns exceeding R1m should be closely scrutinise­d.

Vroom said the episode was very painful and he had no desire to dig up the past.

“There was never a hearing and I chose to leave the organisati­on. The issue was with my diplomas, which I received before 1994 when they did count as a degree.”

He would not comment on the procuremen­t allegation­s.

Taryn York, a lawyer at Howes Inc attorneys who specialise­s in corporate law, said whistleblo­wers are protected from legal or disciplina­ry action as long as their actions are not motivated by personal benefit or malice.

She said the best way to manage whistleblo­wing is to make sure action is taken within a reasonable time, and to communicat­e with the complainan­ts.

Meanwhile, Gauteng Hawks spokespers­on Capt Ndivhuwo Mulamu said the unit was investigat­ing an unrelated fraud case relating to the alleged flouting of procuremen­t processes at the SANBS. Louw said he was not aware of this.

“When the matter is finalised it shall be referred to the National Prosecutin­g Authority for a decision,” Mulamu said.

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