Claim that Polmed lost R11.2m in ‘illegal building deal’

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The projected R11.2m in losses from the SA Police Service’s medical scheme Polmed’s “illegal” acquisition of its building have highlighted assertions made that the fund is being mismanaged. The Star says it has seen minutes from an April 2018 Polmed staff meeting where employees were informed that the Council for Medical Schemes (CMS) had directed the police’s medical fund to sell its Tshwane headquarters as its purchase had contravened sections of the Medical Schemes Act.

This followed a R70m loan Polmed gave its subsidiary, Polmed Propriety Investment (PPI), for the R50m purchase of Polmed House in 2010, where after the property’s revalue was at R58.8m in 2016. “However, one challenge the scheme faced was that a loan amount of R70m was extended to PPI in order to buy the property and the difference between the loan amount and the current value of the property (R58.8m) will result in a loss (R12m) for the scheme,” the minutes read.

It was reported earlier that Polmed had allegedly “illegally” awarded roughly R15.7m to its board members over three years in contravention of its own rules, which state that board payments should be approved at the AGM. Polmed principal Neo Khauoe denied anything illegal had happened with the payments, adding all remuneration had been approved by the CMS.

Full report in The Star

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