Car manufacturer BMW says it has taken steps to ensure that production at its key Rosslyn plant in Pretoria is not affected by disciplinary steps it has taken against 25% of its workforce on suspicion they defrauded the group’s medical aid scheme, in a matter that has attracted the attention of law enforcement.
The German company has taken disciplinary action against more than 500 employees at its SA crown jewel after they were found with their hands in the cookie jar. The Rosslyn plant, which has produced nearly 2-million cars since being established, has about 2,000 workers.
“In the event of the ongoing fraud investigation with BMW Employees Medical Aid Scheme (Bemas), BMW Group SA does not tolerate any acts of bribery, fraud or corruption by its employees. As the investigation is ongoing, we cannot disclose any further details. We are fully co-operating with law enforcement and conducting a thorough internal investigation to ensure that all relevant actions are taken,” the firm told Business Day.
“BMW Group SA is committed to ensuring that this matter does not disrupt our operations or impact our customers. In particular, we want to reaffirm our commitment to the production of the new BMW X3 at BMW Group Plant Rosslyn. This important model is a key part of our strategy for SA and we remain dedicated to delivering it to our customers on schedule,
“BMW Group SA values the trust and confidence of our customers, employees and partners. We will continue to provide updates on this matter as appropriate and remain focused on delivering exceptional products and services to the SA market and the communities in which we operate.”
The Rosslyn plant became the BMW Group’s first manufacturing facility outside Germany when it was established more than 50 years ago. Over 96% of the plant’s output is exported to more than 40 global markets, including Sub-Saharan Africa.
A lot of workers at the plant have received specialised training to support the production of the next-generation BMW X3 plug-in hybrid vehicle. The plant began manufacturing the new X3 model for global export this month.
Fraudulent activity in Bemas claims was picked up by the scheme’s administrator, Discovery Health, whose forensics division picked up various fraudulent activities when it came to claims submitted to Bemas by or on behalf of employees.
Specific practitioners
Discovery Health found these fraudulent claims involved specific medical practitioners in conjunction with the employees of BMW who were the members of Bemas.
The employees’ union, the National Union of Metalworkers of SA (Numsa), last week tried unsuccessfully to have the disciplinary proceedings against its members interdicted on various technical grounds.
“What Numsa is also asking for is for this court to prescribe to BMW what would be a fair process. This is evident from the amended notice of motion, where Numsa seeks declaratory relief that it be allowed to make representations on behalf of employees and that time limits be prescribed for doing so. It would not be appropriate for this court to adhere to this request by Numsa,” reads the judgment handed down by the Johannesburg labour court on Friday.
“It is not necessary for me to decide whether any of Numsa’s members committed the misconduct concerned, and/or whether their dismissal would be justified or fair. That is squarely the task of the arbitrator(s) in the ultimate unfair dismissal proceedings, which Numsa have indicated they would pursue should their members be dismissed.
“I will therefore not pronounce on the extensive contentions made by BMW in its answering affidavit as to the fact that the individual Numsa members committed the misconduct, and that Numsa may have admitted their involvement in the same, save only for saying that considering the allegations made against them, disciplinary action was certainly justified.”
About 20 employees have already been dismissed.
Bestmed Medical Scheme, SA’s fourth-largest open medical scheme, last month warned that fraud and collusion between members and rogue doctors was rampant, saying this was often difficult to pick up.
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