HPCSA demands R6.1m repayment from former head

The Health Professions Council of South Africa (HPCSA) has slapped its former president, Simon Nemutandani, with a formal letter demanding he repay over R6.1 million in alleged irregular payments, unauthorised expenses and unreturned assets.

In the letter of demand, dated 18 February, attorneys Malatji and Company, acting on behalf of the council, demand payment of R6 105 600.12 within 14 business days of receipt of the letter, failing which legal proceedings will be instituted.

Forensic probe into alleged financial impropriety

The demand follows a forensic investigation conducted by SM Xulu Advisory Services in February 2022 into allegations of financial impropriety during Nemutandani’s tenure as president and council member.

The investigation found that Nemutandani was simultaneously employed by the Gauteng department of health as head of the School of Oral Health Sciences and CEO of Wits Oral Health at the time of his appointment to the HPCSA council in December 2020.

His appointment letter expressly recorded that employees of national, provincial or local government are not entitled to additional remuneration for serving on statutory bodies.

Alleged prohibited remuneration claims

Despite this, the council alleges that Nemutandani, a dentist, claimed and pocketed R910 550 in professional and meeting fees, as well as R12 970.46 in disbursements, to which he was allegedly not legally entitled.

ALSO READ: Second settlement secured as SIU closes in on R24 million NLC grant to Sascoc

The HPCSA contends the payments constituted prohibited additional remuneration under public service regulations.

The letter further claims Nemutandani failed to disclose his state employment and other income during the council’s financial interest declaration process and did not cooperate with an internal investigation.

Millions in expenses and unreturned assets

In addition to the alleged irregular fees, the HPCSA says R6 082 794 was incurred for expenses between April 2017 and March 2024.

These include travel, accommodation, conference fees, vehicle hire, fuel, workshops, stakeholder engagements and international events linked to the Association of Medical Councils of Africa.

The council also claims vehicles and electronic devices issued to him have not been returned and damage to two cars cost R22 805. Nemutandani has not responded to request for comment.

NOW READ: Woman arrested in connection with R10.5m payroll fraud at Isuzu