Company news in brief
Mediclinic cleared of bill manipulationAn independent investigation has cleared Mediclinic of intentionally manipulating billing or coding to save the hospital group money.
Steven Powell, head of law firm ENSafrica's forensics practice, found no evidence of an intentional manipulation.
He, however, did find incidents involving mistakes or unintended errors, but they were "random and miniscule", and formed part of the "normal cause of business." One previous billing problem had led to a disciplinary process for an employee.
Said Powell: “The processes we investigated are complex, and we found no evidence of an intentional practice of manipulating billing or coding at a group or hospital level. This is supported by the existence of multiple checks and balances on billing practices.” – Fin24
TFG in sportswear deal
Upmarket fashion and homeware retailer TFG (TFGJ.J), opens new tab said on Wednesday that it has signed a franchise agreement to be British sportswear giant JD Sports Fashion's (JD.L), opens new tab exclusive retail partner in South Africa.
Demand for casual and sportswear has remained steady in South Africa, even after the COVID-19 pandemic, which accelerated a shift to working from home, prompting consumers to shop for comfortable footwear and leggings. Some still work from home two to three days a week.
The deal further bolsters TFG's sneaker and sports fashion businesses, which compete with international sports brands like Nike (NKE.N), opens new tab, as well as local rivals such as Mr Price's (MRPJ.J), opens new tab Studio 88 and UK footwear company Office, a unit of Truworths (TRUJ.J), opens new tab, which is also expanding in South Africa.
JD Sports said the deal is part of its global growth strategy to expand into underpenetrated markets and become a global athletic leisurewear "powerhouse".
TFG expects to launch the first new physical JD Sports stores by the end of the year, with more than 40 JD stores earmarked over the next five years in South Africa, Thunström added.
TFG's sportswear businesses are Sportscene, Totalsports and Sneaker Factory, which according to Thunström are already the destinations of choice for athletic and leisure sports apparel. - Reuters
Habib Overseas Bank into final liquidation
Habib Overseas Bank (HOB), the local unit of a Pakistan-based lender, has been placed into final liquidation.
HOB was first placed under curatorship in March 2023 based on the recommendation of the PA, the financial regulator housed within the South African Reserve Bank, due to failures in governance and regulatory compliance. The lender has no ties to Habib Bank AG Zurich, which also operates in South Africa.
The court papers state that HOB’s net asset value had also fallen from R137.8 million in December 2018 to negative R114 million in May 2023, even before taking into account the costs of curatorship. It’s depositor and customer base had also decreased from R1.333 billion in 2018 to R692 million in 2023 while net loans and advances declined from R518 million in 2019 to R253 million in 2023.
HOB incurred losses since 2020 while its operating cost to income ratio had doubled from 84% in 2018 to 195% in 2022, according to the court papers.
AmaBhungane reported last week that R1.7 billion had been paid out from HOB accounts to offshore companies allegedly involved in money laundering. The Mail & Guardian also reported in late 2016 that HOB had been targeted for a buyout by associates of the Gupta family.
The M&G report said Salim Essa, who owned stakes in Tegeta Exploration and Resources, VR Laser Services and Vardospan – companies linked to the Guptas – as well as private equity player Hamza Farooqui, had tried to buy HOB for R450 million. - Fin24