After the Bell: Whistle-blowers must be hailed for their selfless acts of bravery in a corrupt society

The medical fraternity was caught off guard about two weeks ago when a whistle-blower came forward with explosive claims that one of the three big private hospital groups has been doctoring patient bills to save money.

The former employee of Mediclinic has fingered six hospitals in the group – Mediclinic Kloof, Mediclinic Morningside, Wits Donald Gordon Medical Centre, Mediclinic Cape Gate, Mediclinic Vergelegen and Mediclinic Panorama.

After apparently attempting to bring the alleged fraud to the attention of management – whether national or at hospital level is unclear – the whistle-blower found that their complaints were either not taken seriously or were possibly swept under the carpet. 

While it is unclear whether they were then fired or resigned from the company voluntarily, there is no doubt (based on the detailed information in the emails) that this is not a disgruntled employee making wild allegations; this is someone who knows exactly what they are talking about.

Where there’s smoke, there’s usually fire, and the chimneys at Mediclinic are working overtime at the moment. 

As at least two large medical schemes have clarified with Daily Maverick, the level of detail gives the whistle-blower enough credibility that at least three of the country’s largest medical scheme administrators have launched independent investigations and are going through all their billing from Mediclinic with a fine-tooth comb.

After trying to bring the matter to management’s attention and failing, the whistle-blower sent out an email about two weeks ago to various media as well as the chief executive officer of Mediclinic and about 50 medical schemes (there are about 74 medical schemes in total). 

Essentially, the whistle-blowers made so much noise that they could not be ignored.

Meanwhile, Mediclinic has appointed forensic investigator Steven Powell of ENS Africa. Powell is a renowned white-collar crime investigator and lauded for his contribution to the investigative work in State Capture cases – so his appointment lends credibility to any investigations.

One of the things I find interesting is that whenever a whistle-blower emerges, one of the first terms thrown around is “disgruntled former employee”. I quoted a source in one of my articles saying just that. And while it may well be the case, the description bears some perspective. 

Being a whistle-blower is not something that is lightly undertaken. 

Another recent whistle-blower is Eskom’s former boss, André de Ruyter, who eventually left the country fearing for his life. It’s not an option that is readily available to most.

Usually, there are large sums of money involved and powerful people who want you to shut up or go away. Very often, there may be death threats. Sometimes, these are just empty threats from bullies who have grown up to continue their bullying in a different playground. 

Sometimes, the threats are all too real – such as in the case of Babita Deokaran.

More often than not, whistle-blowers find themselves shut out of the industry in which they have worked. They find it difficult to get jobs – particularly if their identities become known. They face criticism and even ridicule from former colleagues, friends and family, at a time when they need support more than ever. 

Too often, a whistle-blower may be told to “just leave it” or to “walk away, it’s not worth your life”.

Rehana Cassim, a professor of company law at Unisa, says that there are three protections afforded to whistle-blowers by the Companies Act:

1. Qualified privilege for their disclosure. Whistle-blowers cannot be sued for defamation for what they said unless they acted with malice or an improper motive.


2. Immunity from civil, criminal or administrative liability. This means protection from liability for disclosing wrongdoing. Note that the whistle-blower is not immune from liability for their own conduct that may have been revealed by the disclosure.


3. Whistle-blowers may claim compensation for any damages they suffer if anyone harms them or threatens to harm them.