NTC - Netcare - Statement by the board of directors of Netcare Limited regarding

NTC - Netcare - Statement by the board of directors of Netcare Limited regarding
the Organ Transplant Case                                                       
NETCARE LIMITED                                                                 
(Registration number 1996/008242/06)                                            
Code: NTC                                                                       
ISIN number: ZAE000011953                                                       
("Netcare")                                                                     
STATEMENT BY THE BOARD OF DIRECTORS OF NETCARE LIMITED REGARDING THE ORGAN      
TRANSPLANT CASE                                                                 
The Board of Directors of Netcare is pleased to advise that the charges in the  
organ transplant case brought against Netcare Limited ("Netcare") and its chief 
executive officer, Dr Richard Friedland, have been unconditionally withdrawn.   
The Board of Directors of Netcare says that its unequivocal support for Dr      
Friedland and its absolute confidence in his integrity have been fully          
vindicated.                                                                     
Netcare, Netcare Kwa-Zulu (Proprietary) Limited ("NKZ") and Dr Friedland had    
been charged with a number of offences arising out of organ transplants         
performed by several specialist doctors at the Netcare St Augustine`s Hospital  
during the period June 2001 to November 2003.                                   
In terms of section 105A (1) of the Criminal Procedure Act 51 of 1977, NKZ and  
the State have entered into an agreement in terms of which NKZ has pleaded      
guilty to contravening various sections of the Human Tissue Act No 65 of 1983   
and various sections of the Prevention of Organised Crime Act 121 of 1998 ("Plea
Agreement"). Netcare has concluded that certain employees of NKZ must have been 
aware that illegal operations were performed at the St Augustine`s Hospital,    
that certain employees participated in these illegalities and NKZ wrongly       
benefitted from the proceeds of these operations. The conduct of these employees
is legally attributable to NKZ notwithstanding that they disregarded Netcare`s  
internal policies and protocols governing non-related live organ transplants and
the guidelines issued by the Department of Health. None of these employees      
remain in the employ of Netcare or NKZ.                                         
In these circumstances and in terms of the Plea Agreement, NKZ:-                
    1)   was fined R20 000.00 for contravening sections of the Human Tissue     
         Act;                                                                   
                                                                                
2)   was fined R4 Million for being in receipt of monies derived from the   
         kidney transplants and participating in unlawful activities under the  
         Prevention of Organised Crime Act; and                                 
                                                                                
3)   paid the sum of R3.8 Million by way of a confiscation order in terms   
         of the Prevention of Organised Crime Act, being the benefit derived    
         from the illegal operations performed at the St Augustine`s Hospital.  
The Board of Directors of Netcare says important lessons have been learned from 
the NKZ experience. The last of the illegal operations was performed at the end 
of 2003. Since then Netcare and its subsidiaries have devoted considerable time 
and attention to ensuring that the law, the guidelines issued by the Department 
of Health and Netcare`s own internal guidelines are meticulously adhered to and 
enforced in order to ensure that the conduct of deviant employees does not again
cause harm to Netcare and its stakeholders. Netcare`s policies and procedures on
transplantation as contained in its Transplant Clinical Governance Manual have  
also been officially accredited by CHKS Healthcare Accreditation and Quality    
Unit (HAQU), an international health standards accreditation agency based in the
United Kingdom.                                                                 
09 November 2010                                                                
Sponsor                                                                         
Nedbank Capital                                                                 
Date: 09/11/2010 16:30:19 Supplied by www.sharenet.co.za                     
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