Hawks investigate after CEO allegedly bleeds blood service dry

A 2016 forensic investigation report into the South African National Blood Service (SANBS), withheld from the public, has revealed its board of directors abused their powers by appointing an unqualified chief executive officer and paid him an excessive salary without following due process.

The Directorate for Priority Crime Investigation (Hawks) has confirmed a probe.

The investigation was conducted by Werksmans Attorneys into irregularities related to procurement and human resources at the blood service, which operates as a nongovernmental organisation.

The report, which has been seen by The Citizen, found that former CEO Trevor Vroom was paid a salary of close to R4 million for a position that was advertised at R2.7 million.

The Citizen reported earlier this year that the same board approved massive salaries for executives and the annual salary package of the current CEO, Jonathan Louw, was more than double that of the highest tier of CEO salaries in the nonprofit sector.

The report reads: “There are various portions of Mr Vroom’s curriculum vitae which we have found to be gravely misleading. On the allegation whether or not Mr Vroom was adequately qualified to be appointed to the position of CEO, our opinion is that Mr Vroom is deficiently qualified, if one has regard to the role profile for the position which he occupies.”

During the investigation, Vroom said he negotiated his salary with Rob Theunissen, who was still a board member, despite attempting to mislead the investigation by denying his involvement in negotiation of the CEO’s salary.

SANBS board chairperson Getty Simelane said Theunissen was cleared by the SANBS board, despite his attempt to mislead the investigation.

“In this instance, after having applied itself to the report, the board requested Mr Theunissen make a submission to the board, after which it came to the conclusion that Mr Theunissen did not mislead the investigation,” said SANBS marketing manager Silungile Mlambo.

She said Theunissen was able to furnish the board with written evidence which was apparently not “taken into account” in the forensic investigation.

“The [human resources] executive was also able to confirm the steps that Mr Theunissen had taken in collaboration with him at the time of the appointment of the previous CEO to ensure that the remuneration of the incoming CEO corresponded with the board-approved remuneration for that position,” said Simelane.

Louw has been heavily criticised by some workers for buying drones for millions of rands, despite having failed on numerous occasions to get licences for them. The drones would be used to fly blood products to patients in rural areas.

SANBS confirmed yesterday that it had bought two drones from Quantum Systems but declined to disclose costs, saying it had negotiated a special price with the supplier.

“We are proud to be able to inform you that the South African Civil Aviation Authority [CAA] has established a special task team to deal directly with this revolutionary, life-saving technology and it is anticipated that SANBS will be flying blood products to patients before the end of the year,” said the organisation.

The CAA confirmed yesterday that SANBS did not yet have a licence to fly the drones.

Two whistleblowers who advocated the release of the forensic report and claim to have been subjected to continuous victimisation and intimidation by the CEO for raising issues related to maladministration and corruption, have been sued for defamation related to the reputational damage the CEO and board members suffered.

They are currently on suspension, having accused the CEO of victimisation and abuse of power by flouting procurement policies to bleed SANBS coffers.

Hawks spokesperson Captain Ndivhuwo Mulamu confirmed a case of fraud is being investigated. – gcinan@citizen.co.za

Drones to be tested for delivering blood

The South African National Blood Service (SANBS) said it was working on a joint initiative with the national department of health and South African Civil Aviation Authority (CAA) for a pilot project for flying drones to deliver blood products to patients.

The pilot project route identified was between Sebokeng blood bank and Kopanong Hospital, before it was rolled out to remote parts of the country.

“This is something that the minister of health is very passionate about finding a solution for and we are excited to be at the forefront of innovation in this regard,” said the nonprofit organisation.

Since the biggest number of patients will be based in rural areas, the drones are designed to have sufficient range that they will be able to transport blood from urban hubs. – Citizen reporter

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