Netcare Acknowledges Oversight in Thabi Leoka's Qualifications, Commits to Stringent Verification

The South African healthcare titan, Netcare, has faced a formidable predicament following its admission that the company was aware that 'economist' Thabi Leoka did not possess the PhD credential she claimed. This acknowledgment comes after Leoka's tenure as a board member and subsequent departure due to a conflict of interests.

Netcare's confirmation, disclosed in a recent statement, has highlighted a discernible lapse in corporate governance and due diligence. Thabi Leoka's association with the company's board dates from March 2022 to January 2023, during which she was also appointed to a board position at Remgro, leading to her resignation from Netcare. The revelation that Netcare knew as early as November 2021 about the discrepancy concerning her PhD raises significant questions about the measures employed to vet the credentials of those in high-standing positions.

Charles Vikisi, General Counsel and Group Secretary of Netcare Limited, reflected on the due diligence process, explaining that an external integrity assessment firm hired to evaluate Leoka reported she held two master's degrees; one from Wits University and another from the London School of Economics. However, they failed to cross-verify this information with the claim of having a PhD as stated in her curriculum vitae.

Despite references from the report that endorsed Leoka as a professional with integrity considered beyond reproach, Vikisi admitted that in hindsight, Netcare should have proactively inquired why the PhD qualification was not reflected in the background check report. This lapse manifested a missed opportunity to adhere to strict corporate governance standards.

Netcare's situation serves as a teachable moment for the company and the broader industry. Vikisi has professed that valuable lessons have been learned from this oversight and assured stakeholders that henceforth the company's verification process will be reinforced to ensure it is more comprehensive and robust, preventing similar situations from arising in the future.

This incident has sent ripples across the industry, prompting questions about the rigour of background checks. For instance, Sim Tshabalala, Group Chief Executive of Standard Bank—a former employer of Leoka—declined to comment on the matter when prompted, citing the Protection of Personal Information Act (POPIA).

Beyond the underpinnings of corporate circles, Thabi Leoka's credibility may also face scrutiny in public sector engagements. Reports have emerged suggesting she has been removed from President Cyril Ramaphosa’s Presidential Economic Advisory Council, though this has not been officially confirmed as spokesperson Vincent Magwenya has yet to respond to inquiries.

While Leoka is currently in the United States receiving medical attention, the controversy around her PhD qualifications continues back home. She has lately resigned from board positions at MTN South Africa and Anglo American Platinum, and publicly denies accusations of falsifying her PhD credentials.

The Netcare exposé underscores the critical importance of thorough vetting within corporations, especially within the upper echelons. South African businesses and their stakeholders await a renewed standard of accountability, hoping that this cautionary tale paves the way for heightened integrity and transparency in appointment processes.