Ongwediva Medipark ordered to reinstate Ithete
The labour court has ordered Ongwediva Medipark (OMP) to reinstate its suspended managing director Dr Tshali Ithete and to compensate him to the tune of N$3.3 million for loss of income.
Ithete had dragged the hospital to court after he was suspended in March 2021 due to alleged mismanagement and misconduct.
At the time, the hospital’s board of directors appointed Riel Du Toit to conduct an investigation into the claims, with the probe resulting in Ithete's suspension and 17 charges of misconduct.
In February 2022, a disciplinary enquiry found him guilty of seven charges, with chairperson Niel Serrer recommending Ithete’s dismissal.
Ithete, who is also a shareholder of the hospital, appealed the outcome, arguing that the correct procedures were not followed and that the process lacked "substantive fairness."
The appeal, however, was unsuccessful after Serrer stuck to his initial ruling.
Ithete subsequently approached the labour court.
Board authorisation
In his testimony, Du Toit, the chairman of the Erongo Medical Group, accused Ithete of entering into business dealings without board approval.
“Despite high expectations from him, which are informed by his fiduciary duties by virtue of his position, the applicant entered into a business agreement with RentWorks Namibia on behalf of OMP without authorisation from the respondent's board of directors since there were no minutes of any of OMP's board of directors to that effect,” Du Toit testified.
Du Toit also claimed Ithete had breached the hospital’s policy when he allegedly failed to disclose his interests in other businesses that directly competed with Ongwediva Medipark.
“That alone amounts to conflict of interest, which is prohibited in the applicant's contract of employment as well as in the respondent's article of association and shareholders' agreement,” he said.
Ithete, Du Toit claimed, would make donations and commit resources from the hospital without informing the board.
No violations
In his court submissions, Ithete denied any wrongdoing.
His legal team argued that as the MD, "the resolutions upon which the agreement with RentWorks was premised on were general in nature in that they authorise him as an MD and the CFO to enter into it for the sake of maintaining the business.”
lthete further testified that after his dismissal, seven specialists had since left the hospital “due to their displeasure caused by Mr Du Toit since he joined the respondent's board of directors”.
Du Toit’s arrival on the board has allegedly caused serious tensions, which have spilled over to staff members, with several written complaints reportedly filed with the hospital's management.
Ithete had dragged the hospital to court after he was suspended in March 2021 due to alleged mismanagement and misconduct.
At the time, the hospital’s board of directors appointed Riel Du Toit to conduct an investigation into the claims, with the probe resulting in Ithete's suspension and 17 charges of misconduct.
In February 2022, a disciplinary enquiry found him guilty of seven charges, with chairperson Niel Serrer recommending Ithete’s dismissal.
Ithete, who is also a shareholder of the hospital, appealed the outcome, arguing that the correct procedures were not followed and that the process lacked "substantive fairness."
The appeal, however, was unsuccessful after Serrer stuck to his initial ruling.
Ithete subsequently approached the labour court.
Board authorisation
In his testimony, Du Toit, the chairman of the Erongo Medical Group, accused Ithete of entering into business dealings without board approval.
“Despite high expectations from him, which are informed by his fiduciary duties by virtue of his position, the applicant entered into a business agreement with RentWorks Namibia on behalf of OMP without authorisation from the respondent's board of directors since there were no minutes of any of OMP's board of directors to that effect,” Du Toit testified.
Du Toit also claimed Ithete had breached the hospital’s policy when he allegedly failed to disclose his interests in other businesses that directly competed with Ongwediva Medipark.
“That alone amounts to conflict of interest, which is prohibited in the applicant's contract of employment as well as in the respondent's article of association and shareholders' agreement,” he said.
Ithete, Du Toit claimed, would make donations and commit resources from the hospital without informing the board.
No violations
In his court submissions, Ithete denied any wrongdoing.
His legal team argued that as the MD, "the resolutions upon which the agreement with RentWorks was premised on were general in nature in that they authorise him as an MD and the CFO to enter into it for the sake of maintaining the business.”
lthete further testified that after his dismissal, seven specialists had since left the hospital “due to their displeasure caused by Mr Du Toit since he joined the respondent's board of directors”.
Du Toit’s arrival on the board has allegedly caused serious tensions, which have spilled over to staff members, with several written complaints reportedly filed with the hospital's management.
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