De Villiers and Afrisure cc no longer accredited brokers

October 30, 2008

Press release 13 of 2008 Thursday, 23 October 2008

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The Council for Medical Schemes has withdrawn the accreditation of Mr Ettienne de Villiers under reference BR1421 and Afrisure cc (ORG284) in terms of the Medical Schemes Act 131 of 1998 with effect from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

~uCouncil for Medical Schemes#www.medicalschemes.com~
23rd October 2008

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