BOMBSHELL: Suspended Bafana Nkosi has told of cash for votes Picture: JEREMY GLYN

This follows months of uncertainty after the Council of Medical Schemes (CMS) was granted a court order to investigate the beleaguered medical aid.

The scheme's principal officer, Bafana Nkosi, has since been suspended and the findings of the investigation are due for submission in the High Court in Johannesburg on December 15.

The investigation covers numerous issues, including whether members of the board of trustees are fit for office, the scheme's involvement in property developments, and its relationship with Pharmacy Direct, a medical supplier that was awarded an exclusive contract.

Business Times has been shown correspondence among members of the board, indicating that they fear the investigation is likely to recommend that they be axed and the fund be placed under curatorship.

A memo written by board member Willem van Heerden proposed that changes to the board be made at a board meeting on November 14.

Van Heerden claimed to have been told by the investigator, Cornelius Potgieter, that since the probe began in July, "nothing has happened and the trustees are back in their old ways of doing nothing".

Van Heerden had requested a meeting with the investigator to "assess what needs to be done by trustees so that the report back to the CMS is positive (that is, avert curatorship".

Van Heerden proposed that chairman Thulasizwe Shangase be replaced by Bongani Mpungose, and directors Jerry Mokoena and Nick Seobi should step down. This was rejected by some board members.

Bonitas's acting principal officer, Gerhard van Emmenis, declined to comment "on any matter that is part of the investigation or (will) emanate from the investigation". Shangase did not respond to questions.

Van Heerden's memo was not the first time that he had warned of possible curatorship.

After what he described as a "thorough grilling" by the investigator, Van Heerden told other board members that the investigator was focusing on numerous business deals Bonitas was involved in.

"After yesterday (the day Van Heerden was interrogated), I see a move away from the previous stance - the moment that five of nine trustees do not pass his "fitness to govern" test, he will recommend curatorship. If the investigator recommends curatorship, the scheme is dead."

Van Heerden also warned that curatorship would result in companies withdrawing from the fund, which could see it losing up to 50% of its members.

Van Heerden did not respond to written questions from Business Times. When contacted by phone he said he had been in hospital, then hung up.

Potgieter declined to say whether or not he had advised Bonitas on how to avert curatorship. He responded to inquiries by forwarding the July court order.

"In conducting the investigation, I have exercised my powers in terms of the said order ..."

Potgieter's investigation has also focused on Bonitas's involvement in property developments worth R42-million in Durban, and the role of Pharmacy Direct in the election of trustees.

Pharmacy Direct is alleged to have influenced the election of the Bonitas board and sponsored their trips in order to secure and maintain a multimillion-rand contract.

Business Times has seen a copy of the contract that gives Pharmacy Direct exclusive rights to provide chronic medication and ARVs to eligible Bonitas members.

Nkosi, the suspended principal officer, who was grilled for 10 hours by the investigator for his alleged involvement in irregular property development deals, dropped a bombshell on November 19 when he alleged in a submission to the CMS that Pharmacy Direct sponsored transport and hotel accommodation for Bonitas trustees.

He said Pharmacy Direct paid certain brokers to secure votes to ensure that certain trustees made it onto the board in 2006. Nkosi also claimed Pharmacy Direct sponsored trips to New York for board members. He further said Potgieter was biased against him as he had barred him from speaking to board members.

Nkosi confirmed this week that he had made a submission to the CMS. He said: "I unfortunately am not in a position to divulge the contents of my e-mail as it is highly confidential and it is only meant for the CMS."

Pharmacy Direct said it gave "all information" to the investigator. "We do, however, categorically deny any wrongdoing whatsoever on the part of Pharmacy Direct and (its) directors."

CMS spokesman Aleksandra Serwa said: "The investigation is under way and thus sub judice ... we prefer not to comment at this stage."

Through its lawyers, Gildenhuys Lessing Malatji, Bonitas declined to comment, also saying the matter was sub judice.