An effort to resolve the ongoing board tussle between the northern-based private hospital, Ongwediva Medipark and its founding member and former managing director Dr Tshali Iithete, proved futile as negotiations failed.
The parties last month were scheduled for mediation for them to try and reach a settlement in the matter but such a meeting could not take place as scheduled on 12 October.
According to the mediator’s report, the hospital’s representative and board chairman, Riel du Toit missed the meeting. Du Toit, who resides in Pretoria, South Africa, allegedly had difficulties with his travel arrangements.
The parties, however, are again involved in settlement negotiations and want to schedule an alternative mediation session.
High Court Judge Shafimana Ueitele has postponed the matter to 17 January 2023.
Medipark is seeking an order compelling Iithete to pay back N$1.1 million he allegedly owes the hospital for unauthorised expenditures between March 2014 and January 2020.
The hospital claims that it entered into an agreement with Iithete where they would pay him N$1.3 million per annum. That package is inclusive of his salary, contributions towards his medical aid, pension fund, and social security.
The agreement further stipulated that the hospital would pay 50% of the salaries and medical aid of Iithete’s employees.
During an audit in 2020, the hospital allegedly discovered that Iithete breached their contract as there were unauthorised expenditures. They also discovered that a large sum was used to pay medical personnel hired by Iithete from time to time – the amount was not returned.
Thus, the hospital claims Iithete owes the hospital N$1 135 662.79.
Iithete has denied the claims.
According to him, the agreement states that the hospital was to pay 50% towards the salaries of the medical personnel he hired.
He said the hospital needs to prove that he breached the contract and now owes the hospital money to the unsettled loan account.
In turn, he is suing the hospital claiming it breached their service agreement, so he is entitled to N$2.3 million for services his employees rendered to the hospital between 2018 and 2022.
Iithete was unceremoniously booted as the hospital’s managing director after he was found guilty of fraud, dishonesty, gross negligence, and charges relating to non-disclosure of interest.
-mamakali@nepc.com.na