Numsa Investment Company suspends CEO

The chief executive of the investment arm of metalworkers union Numsa has been served with a letter placing him on precautionary suspension, as the battle for control of the lucrative investment company intensifies.

In the letter, drafted by Kwandiwe Kondlo, the chairperson of the board of the Numsa Investment Company, and which Sunday World has seen, Khandani Msibi is informed that the company has been made aware of serious allegations against him as CEO, “relating to, inter alia, gross misconduct and/or your failure to carry out your duties with, inter alia, utmost integrity, honesty, diligence and care”.

“The employer is placing you on precautionary suspension because of the serious nature of the allegations against you. Furthermore, taking into account your position (in the company), there is concern that your continued presence may (without limitation), jeopardise the investigation and/or consideration of the allegations,” Nkondlo wrote, noting that the suspension was on full pay.

Msibi, who has declared the planned suspension “null and void”, has been locked in a high-profile battle with Numsa general-secretary Irvin Jim amid allegations of corruption and financial misconduct triggered by the collapse of a multimillion rand healthcare investment.

At the centre of the dispute is the collapse of Sizwe Hosmed Medical Scheme, which has seen a dramatic dip in its solvency ratio – from 36.5% in 2021 to 6.6% – leading to the Council for Medical Schemes placing the medical scheme under curatorship.

Sizwe Hosmed is administered by 3Sixty Health, a subsidiary of 3Sixty Life, of which Msibi is executive chairperson. The Reserve Bank has placed 3Sixty Life under curatorship overgovernance concerns. Both entities fall under the Numsa Investment Company (NIC).

The fallout with Jim stems from allegations that duplicate claims of R17-million were paid out by Sizwe Hosmed because of system failures. Msibi has accused the Numsa boss of “conducting a concerted campaign to destroy 3Sixty Health”.

In the letter of suspension from the NIC, Nkondlo said Msibi was barred from performing his duties, contacting stakeholders or engaging with employees and the media during the investigation.

“Any non-compliance with the terms and conditions of your suspension will be viewed in a serious light and may result in a disciplinary process, and/or your suspension on pay being overturned to suspension without pay.

“I wish to make it clear that the employer has not formed a view regarding the veracity or otherwise of the allegations made against you. A disciplinary process may or may not ensue, after the employer has (without limitation) inter alia considered and/or investigated the allegations,” reads the letter.

Msibi is fighting back, arguing in a letter of response that the chair should produce the full written board resolution that effected his precautionary suspension.

He is also demanding that the board provide more details on the allegations.

“For the avoidance of doubt, NIC holds no controlling interest in the relevant group subsidiaries, and accordingly, has no standing to effect my suspension or removal in respect of those entities. I remain willing to engage through a properly constituted board,” Msibi wrote.

He asked for the specific provision in the memorandum, any delegation of authority or shareholders’ agreement that gave the board the power to take the decision.

He also wants particulars of the allegations and charges against him.

“The references to ‘gross misconduct’ and ‘without limitation’, absent any specifics, do not enable me to understand or respond to anything. Pending receipt of the above, I do not accept that any valid suspension has been effected, and I reserve all my rights, including in respect of any claims I hold against the company and its related entities.”

Kondlo referred Sunday World to Numsa president Mpho Chirwa, who said disciplinary matters initiated by the investment company would not be processed through the media.

Msibi declined to comment.