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NTC
NTC
NTC - Netcare - Statement by the board of directors of Netcare Limited regarding
the Organ Transplant Case
NETCARE LIMITED
(Registration number 1996/008242/06)
Code: NTC
ISIN number: ZAE000011953
("Netcare")
STATEMENT BY THE BOARD OF DIRECTORS OF NETCARE LIMITED REGARDING THE ORGAN
TRANSPLANT CASE
The Board of Directors of Netcare is pleased to advise that the charges in the
organ transplant case brought against Netcare Limited ("Netcare") and its chief
executive officer, Dr Richard Friedland, have been unconditionally withdrawn.
The Board of Directors of Netcare says that its unequivocal support for Dr
Friedland and its absolute confidence in his integrity have been fully
vindicated.
Netcare, Netcare Kwa-Zulu (Proprietary) Limited ("NKZ") and Dr Friedland had
been charged with a number of offences arising out of organ transplants
performed by several specialist doctors at the Netcare St Augustine`s Hospital
during the period June 2001 to November 2003.
In terms of section 105A (1) of the Criminal Procedure Act 51 of 1977, NKZ and
the State have entered into an agreement in terms of which NKZ has pleaded
guilty to contravening various sections of the Human Tissue Act No 65 of 1983
and various sections of the Prevention of Organised Crime Act 121 of 1998 ("Plea
Agreement"). Netcare has concluded that certain employees of NKZ must have been
aware that illegal operations were performed at the St Augustine`s Hospital,
that certain employees participated in these illegalities and NKZ wrongly
benefitted from the proceeds of these operations. The conduct of these employees
is legally attributable to NKZ notwithstanding that they disregarded Netcare`s
internal policies and protocols governing non-related live organ transplants and
the guidelines issued by the Department of Health. None of these employees
remain in the employ of Netcare or NKZ.
In these circumstances and in terms of the Plea Agreement, NKZ:-
1) was fined R20 000.00 for contravening sections of the Human Tissue
Act;
2) was fined R4 Million for being in receipt of monies derived from the
kidney transplants and participating in unlawful activities under the
Prevention of Organised Crime Act; and
3) paid the sum of R3.8 Million by way of a confiscation order in terms
of the Prevention of Organised Crime Act, being the benefit derived
from the illegal operations performed at the St Augustine`s Hospital.
The Board of Directors of Netcare says important lessons have been learned from
the NKZ experience. The last of the illegal operations was performed at the end
of 2003. Since then Netcare and its subsidiaries have devoted considerable time
and attention to ensuring that the law, the guidelines issued by the Department
of Health and Netcare`s own internal guidelines are meticulously adhered to and
enforced in order to ensure that the conduct of deviant employees does not again
cause harm to Netcare and its stakeholders. Netcare`s policies and procedures on
transplantation as contained in its Transplant Clinical Governance Manual have
also been officially accredited by CHKS Healthcare Accreditation and Quality
Unit (HAQU), an international health standards accreditation agency based in the
United Kingdom.
09 November 2010
Sponsor
Nedbank Capital
Date: 09/11/2010 16:30:19 Produced by the JSE SENS Department.
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