Medilife four out on bail
2001-05-15 10:09
Pietermaritzburg - Four of the kingpins in the Medilife medical aid scheme were granted bail on Monday in the Pietermaritzburg Regional Court, four years after the scheme collapsed under allegations of fraud, leaving unpaid members' claims of about R37 million.
The four will face 18 charges, including fraud and theft, amounting to R37 million, as well as contravention of the Medical Aid Schemes, Companies and Insolvency acts.
Former principal director of Medilife, Robert Noel Jansen, "Bob" van Vuuren and his auditor Phillip Guy Mclaughlin Pansegrouw were each granted R30 000 bail. Van Vuuren's wife, Judy-Dianne, was granted bail of R10 000. All three were arrested last Thursday.
Johan Kruger, a fourth former director who was arrested yesterday morning, was granted bail of R8 000.
It is alleged that R18 million was unlawfully removed from the medical aid scheme's funds and transferred to numerous subsidiary companies within the Medilife Holdings Group. Members lost millions in unpaid claims, which by February 1998 had mounted to more than R37 million.
Medilife was liquidated in September 1997.
Kruger, Pansegrouw and the Van Vuurens surrendered their passports and all their travel documents to the investigating officer.
Requirements of their bail conditions are that they do not leave the country or leave their province of residence without permission. They should report to the police twice a week and they are not allowed to communicate with any former employees of Medilife Medical Aid Scheme or any company forming part of the Medilife Holdings Group.
The state did not oppose bail. State advocate Glen Webber said there is no indication that the four will be a flight risk, as they did not "skip the country" for over three years while the case was being investigated.
The Van Vuurens were arrested in East London, Pansegrouw in Johannesburg and Kruger in Pietermaritzburg.
In his affidavit, Van Vuuren, who is now involved with a family business that advertises tourism destinations and tours, said he lost everything during the liquidation in 1998.
"I had to start everything from scratch," he said. The father of three said he handed himself over to police on Thursday after his wife's arrest.
He added that he intends to plead not guilty and has every intention of proving his innocence.
Pansegrouw, currently a self-employed financial consultant in Gauteng, said in his affidavit that he was made a partner of accounting firm Ernst & Young in 1995. Between 1993 and 1994 he was Medilife's senior audit manager, handling VAT and taxation.
"However, when I was elevated to partner status, Medilife fell into my portfolio of clients. During 1995 to 1997 I was not involved at all in the internal management of Medilife, nor was I aware of any illegal activities," said Pansegrouw.
He said he resigned from Ernst & Young in 1997 to become Medilife's financial director.
"In June 1997 I noticed certain financial anomalies, which I unsuccessfully attempted to quantify. I notified the auditors of Ernst & Young, who verified my findings, which resulted in Ernst & Young consulting with Medilife medical aid scheme's committee. They, together with the chairman, ultimately approached the registrar of medical schemes," he said.
Pansegrouw said he also intends to plead not guilty and denied any wrongdoing on his part.
The four will be served with an indictment on June 8.