The Council for Medical Schemes (CMS) instigated a forensic investigation into Bonitas, the second-largest open medical scheme in the country, following serious allegations made against its executives and senior trustees related to improper procurement processes. It said early last month that the investigation was expected to take at least six months. “These concerns have been heightened by recent media reports alleging governance failures and procurement improprieties involving senior Bonitas executives and trustees,” Medscheme said.
“Medscheme has sought to resolve these concerns amicably, requesting written assurance from Bonitas that no RFP awards would be made before the CMS investigation concludes. These requests were declined.” Sanlam decided last year to move its employees from Bonitas to Fedhealth. Its decision came shortly after Bonitas’ trustees cancelled a long-standing contract with ADS to attract young members and appointed a service provider linked to a former ADS executive, Business Day columnist Michael Avery reported at the time.
Bonitas has insisted its procurement processes were properly followed. It denied the allegations of irregularities. However, Avery, in a Business Day column, wrote that “a whistle-blower’s flash drive now in my possession lays bare a concerted effort, meticulously planned and expertly executed, to capture the R20bn scheme from the inside. It details how senior executives, trustees and favoured consultants appear to have bent procurement rules, misused confidential data and fronted ownership structures to redirect lucrative contracts to their own circle.”
Read Full Article on Business Day
