NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 39

39. Related party transactions

39.1 Directors

Details relating to Directors’ emoluments are disclosed in note 30. There are no loans to Directors.

The Directors’ shareholdings are disclosed on page 113 of this report. Transactions within the Group are listed below.

39.2 Transactions with entities in the Group

During the period the Group entered into the following arm's length related-party transactions:

  GROUP
June 2014
R’000
  GROUP
June 2013
R'000
 
Directors        
Medical aid contributions paid by directors – to schemes administered by Medscheme Holdings (Proprietary) Limited 396   322  
Mr MJ Madungandaba has a controlling interest in Namane Financial Services – consulting and marketing fees paid to Namane Financial Services 2 052   2 052  
Mr S Rothbart has a controlling interest in Rothbart Inc. – consulting fees paid by Medscheme Holdings (Proprietary) Limited 1 800   1 826  
Associates        
Medscheme Holdings (Proprietary) Limited – switching fees paid to TradeBridge (Proprietary) Limited   8 844  
Medscheme Holdings (Proprietary) Limited – interest charged on loan to TradeBridge (Proprietary) Limited *(Prior to sale)   1 009  
Jasco Electronics Holdings Limited – finance income received 7 151   6 048  
Jasco Electronics Holdings Limited – investment in preference shares 90 000   100 000  
Jasco Electronics Holdings Limited – dividends received   1 201  
Jasco Security – Medscheme Holdings access control setup costs   1 885  
Helios IT Solutions (Proprietary) Limited – communication set-up costs paid to Jasco Electronics   188  
Subsidiaries        
AfroCentric Health Limited – consulting fees paid to Medscheme Holdings (Proprietary) Limited   8  
AfroCentric Health Limited – profile fees paid to Helios IT Solutions (Proprietary) Limited 1   52  
AfroCentric Health Limited – management fees paid to Medscheme Holdings (Proprietary) Limited 914   914  
AfroCentric Health Limited – Telkom, TMS and printer fees paid to Helios IT Solutions (Proprietary) Limited    
AfroCentric Management Services (Proprietary) Limited – profile fees paid to Helios IT Solutions (Proprietary) Limited 165   171  
AfroCentric Management Services (Proprietary) Limited– Telkom ,TMS and printer fees paid to Helios IT Solutions (Proprietary) Limited 3    
AfroCentric Management Services (Proprietary) Limited – IT support services paid to Helios IT Solutions (Proprietary) Limited 14    
Aid for Aids Management (Proprietary) Limited – switching fees paid to Helios IT Solutions (Proprietary) Limited   52  
Aid for Aids Management (Proprietary) Limited – Telkom, TMS and printer fees paid to Helios IT Solutions (Proprietary) Limited 944    
Aid for Aids Management (Proprietary) Limited – profile fees paid to Helios IT Solutions (Proprietary) Limited 1 928   2 488  
Allegra (Proprietary) Limited – fixed assets transferred from Helios IT Solutions (Proprietary) Limited at book value   2 335  
Allegra (Proprietary) Limited – switching fees paid to Helios IT Solutions (Proprietary) Limited 5 114    
Allegra (Proprietary) Limited – TMS and Telkom fees paid to Helios IT Solutions (Proprietary) Limited 9    
Allegra (Proprietary) Limited – licence and support fee paid to Helios IT Solutions (Proprietary) Limited 872    
Allegra (Proprietary) Limited – dividend paid to Helios IT Solutions (Proprietary) Limited 1 534    
Bonitas Marketing Company (Proprietary) Limited – consulting paid to Helios IT Solutions (Proprietary) Limited 169    
Bonitas Marketing Company (Proprietary) Limited – profile fees paid to Helios IT Solutions (Proprietary) Limited   2  
Bonitas Marketing Company (Proprietary) Limited – Telkom, TMS and printer fees paid to Helios IT Solutions (Proprietary) Limited 54    
Bonitas Marketing Company (Proprietary) Limited – broker fees paid to Medscheme Holdings (Proprietary) Limited 1 625   1 354  
Bonitas Marketing Company (Proprietary) Limited – on-site support fees paid to Helios IT Solutions (Proprietary) Limited 364   157  
Bonitas Marketing Company (Proprietary) Limited – subscription fees paid to Marabou Travel Management (Proprietary) Limited 211    
Helios IT Solutions (Proprietary) Limited – management fees paid to Medscheme Holdings (Proprietary) Limited    
Helios IT Solutions (Proprietary) Limited – consulting fees paid to Medscheme Holdings (Proprietary) Limited   308  
Helios IT Solutions (Proprietary) Limited – management fees paid to AfroCentric Management Services (Proprietary) Limited 2 400   2 400  
Helios IT Solutions (Proprietary) Limited – fixed assets transferred from Medscheme Holdings (Proprietary) Limited at book value   76 266  
Helios IT Solutions (Proprietary) Limited – switching fees paid to Allegra (Proprietary) Limited   26 408  
IE Business Insight Strategic Consulting (Proprietary) Limited – management fees paid to Medscheme Holdings (Proprietary) Limited   360  
IE Business Insight Strategic Consulting (Proprietary) Limited – profile fees paid to Helios IT Solutions (Proprietary)   18  
IE Business Insight Strategic Consulting (Proprietary) Limited – management fees paid to Marabou Travel Management (Proprietary) Limited 1 087   1 186  
IE Business Insight Strategic Consulting (Proprietary) Limited – fixed assets transferred from Helios IT Solutions (Proprietary) Limited at book value   4 858  
Marabou Travel (Proprietary) Limited – management fees paid to Marabou Travel Management (Proprietary) Limited 2 132   1 140  
Marabou Travel Management (Proprietary) Limited – management fees paid to Marabou Travel (Proprietary) Limited 2 132   2 326  
Medscheme Administrators Swaziland (Proprietary) Limited – management fees paid to Medscheme Holdings (Proprietary) Limited 1 320   1 320  
Medscheme Administrators Swaziland (Proprietary) Limited – switching fees paid to Helios IT Solutions (Proprietary) Limited   195  
Medscheme Administrators Swaziland (Proprietary) Limited – IT support services paid to Helios IT Solutions (Proprietary) Limited 679    
Medscheme Administrators Swaziland (Proprietary) Limited – profile fees paid to Helios IT Solutions (Proprietary) Limited 346   338  
Medscheme Administrators Swaziland (Proprietary) Limited – licence and support fees paid to Helios IT Solutions (Proprietary) Limited 2 659   1 925  
Medscheme Asset management (Proprietary) Limited – profile fees paid to Helios IT Solutions (Proprietary) Limited 85    
Medscheme Asset management (Proprietary) Limited – Telkom, TMS and printer fees paid to Helios IT Solutions (Proprietary) Limited 21    
Medscheme Holdings (Proprietary) Limited – management fees paid to AfroCentric Management Services (Proprietary) Limited 25 280   23 480  
Medscheme Holdings (Proprietary) Limited – IT support services paid to Helios IT Solutions (Proprietary) Limited 536    
Medscheme Holdings (Proprietary) Limited – management fees paid to AfroCentric Health Limited 2 089   2 089  
Medscheme Holdings (Proprietary) Limited – switching fees paid to Allegra (Proprietary) Limited 23 857    
Medscheme Holdings (Proprietary) Limited – subscription fees paid to Marabou Travel Management (Proprietary) Limited 162   157  
Medscheme Holdings (Proprietary) Limited – switching fees paid to Helios IT Solutions (Proprietary) Limited 15 617   11 699  
Medscheme Holdings (Proprietary) Limited – information technology admin fees paid to Helios IT Solutions (Proprietary) Limited 184 172   195 449  
Medscheme Holdings (Proprietary) Limited – profile fees paid to Helios IT Solutions (Proprietary) Limited 59 598   56 257  
Medscheme Holdings (Proprietary) Limited – dividend paid to AfroCentric Health Limited 244 698    
Medscheme Namibia (Proprietary) Limited – licence and support fees paid to Helios IT Solutions (Proprietary Limited) 3 695   3 877  
Medscheme Namibia (Proprietary) Limited – management fees paid to Medscheme Holdings (Proprietary) Limited 324   324  
Medscheme Namibia (Proprietary) Limited – profile fees paid to Helios IT Solutions (Proprietary) Limited 690    
AfroCentric Health Limited – management fees paid to AfroCentric Investment Corporation   100  
AfroCentric Investment Corporation Limited – loan advanced by AfroCentric Health Limited        
* Balance at year-end 75 342   110 016  
AfroCentric Investment Corporation Limited – interest charged on loan from AfroCentric Health Limited 9 693   6 284  
AfroCentric Investment Corporation Limited – management fees paid to Medscheme Holdings (Proprietary) Limited 1 500   1 000  
AfroCentric Health Limited – dividend paid to AfroCentric Investment Corporation 126 865    
39.3 Key management personnel compensation

  GROUP
June 2014
R’000
  GROUP
June 2013
R'000
  COMPANY
June 2014
R’000
  COMPANY
June 2013
R'000
 
Short-term employee benefits 3 716   4 521      
Share-based payments (note 37) 10 765   39 868   815   17 665  

Key management personnel comprise Executive Directors within the AfroCentric Health Limited Group.

39.4 Inter-Group guarantees

The following Group companies have provided cross guarantees to the AfroCentric Health Limited bankers, for facilities offered to that Company:

Medicaid Administrators (Proprietary) Limited
Medscheme (Namibia) (Proprietary) Limited
Medscheme Administrators (Swaziland) (Proprietary) Limited
Helios IT Solutions (Proprietary) Limited

NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 39