CMS: De Villiers and Afrisure cc no longer accredited brokers

The Council for Medical Schemes has withdrawn the accreditation of Mr Ettienne de Villiers under reference BR1421 and Afrisure cc (ORG284) in terms of the Medical Schemes Act 131 of 1998 with effect from 2 October 2008.

This withdrawal of accreditation comes as a result of a judgement handed down by the Supreme Court of Appeal (SCA) against Mr De Villiers and Afrisure cc in a civil claim brought by Mr BJ Watson in his capacity as the liquidator of Publiserve Healthcare Scheme (Publiserve).

The SCA dismissed the appeal by Mr De Villiers against a ruling handed down in June 2007 wherein it was found that Mr De Villiers and his brokerage received more than R5.4 million as broker remuneration between October 2000 and January 2001 in an illegal, dishonourable and unenforceable way because it was inter alia disguised to circumvent the regulatory provisions and obtained without the prescribed agreements being in place.

Mr De Villiers was also found to be acting in breach of his fiduciary duty as a trustee of Publiserve when he allowed five payments to be made to Afrisure cc, his own broker business, totalling R5 454 636.50. The SCA ruled that Mr De Villiers:

• exceeded his powers as trustee of the scheme by allowing it to make illegal payments;
  
• exercised his permissive powers to allow payment for an improper purpose as it was for his personal advantage;
  
• failed to exercise an independent discretion as trustee against his personal interest; and placed himself in a position where his personal interest to receive payment was in conflict with his duty as trustee to prevent an illegal payment.

This withdrawal of accreditation follows the refusal by the Financial Services Board to license Mr De Villiers and Afrisure cc as a financial services provider since he was considered not fit and proper to render such services.

This withdrawal of accreditation has the following effect:

•  Mr De Villiers and Afrisure cc are disqualified from rendering any broker services with effect from 2 October 2008 for a period of five (5) years.
  
• No medical scheme or any other party may contract with or remunerate Mr De Villiers and/or Afrisure cc for the provision of broker services.
  
• Mr De Villiers and Selfmed Medical Scheme (Selfmed) must inform all affected clients and stakeholders concerned that the accreditation has been withdrawn.
  
• Mr De Villiers is disqualified from consulting with any medical scheme, other party or person, or his former clients in taking steps to transfer the business to any other broker.
  
• Since the clients of Mr De Villiers and Afrisure cc are mainly with Selfmed, Selfmed is to communicate directly with the members involved and secure their membership with the scheme without a broker.

* Members of Selfmed are at liberty to individually appoint a broker of choice who is fit and proper, duly accredited and in a position to render broker services in a professional manner.

No person may allocate former clients of Mr De Villiers and/or Afrisure cc to any other medical scheme or broker as a result of this withdrawal of accreditation.