The BBBEE (broad-based BEE) Commission is investigating Cape Town-based radiology firm Bergman Ross & Partners (BRP) over fronting allegations after the firm’s black partner accused it of shortchanging him and merely using him to pretend it has black ownership and control.
Thapelo Motshudi partnered with BRP in 2015 to provide radiology services at Netcare’s Pinehaven facility. The new partners formed a company, Motshudi, Bergman Ross Radiologists, and won a five-year contract to provide services to Netcare.
It was Motshudi who brought the opportunity to BRP because he lacked the funding required to start the venture.
He said the understanding between him and BRP was that he and BRP would hold an equal stake in the venture.
However, Motshudi alleges that three years into the partnership he learnt that BRP claimed to hold 74% of the practice, leaving him the balance.
The partners have been at loggerheads since then, with the matter before the courts, the commission and the Health Professions Council of SA (HPCSA).
The complaint Motshudi laid with the HPCSA refers to sector regulations stating that a company cannot own more than 24% of a medical practice.
“BRP has surreptitiously, and without my consent, arrogated to itself 74% of equity in a radiology practice we co-own, thus reneging on a verbal agreement we made stating that we will each own 50% of the incorporated company,” reads the complaint, which Business Day has seen.
“It has since become evident that even the equal shareholding we had originally envisaged, let alone the undeserved 74% they claim, is in transgression of regulation 706 of the Health Professions Act, which states that a company cannot own more than 24% of a medical practice.”
Motshudi’s case is backed by medical doctor and entrepreneur Jacky Rampedi who co-owns the licence in Netcare Pinehaven Hospital. Rampedi said he had alerted Motshudi on the radiology lease contract and had encouraged him to bid for it.
“When it became clear to me that he was not going to succeed with sourcing funding, we discussed that he consider bringing in a partner who could assist him with meeting the requirement for him to provide Netcare with the compulsory financial guarantees,” Rampedi said in a letter before court.
“It was in that context that he approached BRP, and I later met representatives of the company when they came with him to present their joint proposal. It was never envisaged, or even discussed, that Motshudi would be a junior partner in this venture,” he said.
“On the contrary, I would not have supported the joint proposal if I had been aware that Motshudi was not going to be, at the very least, an equal if not a majority partner, given the transformation agenda that drove my support for him.”
BRP acknowledged the investigation against it by the commission and the HPCSA, as well as the legal challenge to the shareholding of Motshudi Bergman Ross Radiologists
“BRP regrets Motshudi’s dissatisfaction but rejects his portrayal of our actions. This three-year-old matter, now before the courts, HPCSA and BBBEE Commission, will be resolved with full transparency,” the company said.
“BRP has engaged legal counsel to defend our position and trusts the process to reveal the truth. Meanwhile, BRP remains focused on our mission: delivering exceptional radiology care,” it added.
“We welcome scrutiny from the HPCSA and the courts, confident that a fair review will affirm our integrity. We are confident these allegations will be dismissed. We stand by our exemplary record of integrity and fairness. Our working operations remain unaffected by this matter.”
Netcare and Motshudi declined to comment on the matter.
Update: April 25 2025
This story has been updated with content from Motshudi’s letter before the court.
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