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Bafana Nkosi, the former principal executive officer of the Bonitas medical aid scheme.
Durban – The former head of Bonitas, who resigned under a dark cloud of financial mismanagement in one of the country’s biggest medical aid schemes, has popped up unexpectedly as a new board member of Ezemvelo KZN Wildlife.
Bafana Nkosi, the former principal executive officer of the Bonitas medical aid scheme, resigned in January 2010 – just five days after the Council of Medical Schemes lodged court papers in the Johannesburg High Court alleging that he was “grossly negligent” in managing a property deal for Bonitas and that several million rand of medical scheme funds had been wasted under his watch and that of the board of trustees.
Along with members of the former board of trustees, Nkosi was alleged to be implicated in at least eight counts of corporate governance transgressions.
These included alleged overpayments in a R58 million property deal, tender irregularities, free overseas holidays, irregular contracts with pharmaceutical companies, failure to disclose conflicted shareholdings and interests and irregular brokerage agreements.
Nkosi was put on special leave in July 2009 and was facing criminal and disciplinary proceedings, according to court papers lodged by the acting registrar of medical schemes, Craig Burton-Durham.
Burton-Durham said there had been a “corporate governance failure” at Bonitas, which was then the second-largest open medical scheme in the country. There was also a real risk that members would jump ship to other schemes unless Bonitas was placed immediately under curatorship.
Now, three years after resigning from Bonitas to avoid a disciplinary inquiry, the Joburg property and investment manager will be travelling to Pietermaritzburg regularly to attend board meetings of the Ezemvelo nature conservation agency. Remuneration and travel costs are covered by Ezemvelo.
While Nkosi was never charged criminally and did not face his internal disciplinary hearing, it appears that he failed to disclose the full circumstances of his departure from Bonitas to Meshack Radebe, the provincial MEC for the Department of Agriculture and Environmental Affairs, who appoints board members to Ezemvelo.
It also remains unclear whether Radebe or his senior officials conducted thorough background checks on Nkosi before confirming his Ezemvelo position late last month, an appointment based on his “extensive knowledge of the business sector”.
Ironically, Nkosi is among several new members appointed in the wake of a recent court case to ensure that the appointment of Ezemvelo board members is conducted lawfully.
Last year, the Animal Interest Alliance went to the Pietermaritzburg High Court seeking an order that the previous board was invalid because members were allegedly not appointed in full compliance with the KZN Nature Conservation Act. The final court order was suspended, on condition that new board members were appointed lawfully within six months.
Nkosi admitted to The Mercury this week that he bungled a Bonitas property deal at Clansthal on the South Coast and that he also took a free holiday in Dubai paid for by a Bonitas pharmaceutical supplier.
But he insisted that the other claims made against him had no substance and that he was “pushed out” of Bonitas because he had “trampled over certain people’s toes”.
Responding to queries, Radebe said he was “satisfied with the appointment of the current board and that all members would take Ezemvelo KZN Wildlife to greater heights and fulfil their duties”.
“As per his CV, Bonitas was listed as his (Nkosi’s) last formal employer. After this, the CV also states that he was self-employed. Even now, Mr Nkosi is still serving in various companies as a director.
“The MEC believes Mr Nkosi was open enough and honest about his qualifications and experience.”
However, if there was any information that indicated a need to reconsider Nkosi’s appointment, the MEC would welcome such information and would act accordingly.
The Mercury contacted Bonitas to establish whether any civil or criminal charges were pending or contemplated against Nkosi, but medical scheme managers did not respond to these queries.
Bonitas emerged recently from more than a year of curatorship and, according to a Durban legal expert, it is unlikely that civil claims for alleged debt could still be brought against Nkosi as such claims are usually prescribed (legally barred) after three years.
The Mercury
