Netcare loses bid to block KPMG from inquiry

NETCARE on Friday lost its bid to have KPMG blocked from working on a market inquiry into the private health sector, the Competition Commission said. The High Court in Johannesburg dismissed Netcare’s application to stop the commission from using KPMG’s services as technical advisers in the inquiry. Citing its grounds for the application, Netcare said there was a conflict of interest, as KPMG had done work for them and had access to their confidential documents. The court, however, dismissed Netcare’s application with costs, commission spokesman Mava Scott said. He welcomed the ruling. “The judgment vindicates the position of the commission that parties in the health sector need to co-operate fully with the health inquiry rather than seek to derail it as in the case of Netcare.” Scott added: “In the light of this judgment, the commission is now confident that the health inquiry will proceed in full swing.” Netcare said in a statement that it was disappointed with the ruling, adding that it “believes that the decision is premised on material errors of fact and law”. It said it was considering its options. “Netcare is of the opinion that companies will need to give careful consideration to the way in which they engage professional services companies in light of the ruling,” it added. While the dates for the inquiry have not yet been set, it is expected to start in March. – Staff Reporter and Sapa