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Contingencies
Exposure to errors and omissions in ordinary course of business
As for any business with similar operations, the Group is exposed to various potential claims relating to alleged errors and
omissions or non-compliance with laws and regulations in the conduct of its ordinary course of business. At the date of these
Annual Financial Statements, the Group is unaware of any material claims, actual or contemplated, by any of the Group’s
stakeholders or customers, except for those listed below.
Neil Harvey & Associates Proprietary Limited
Neil Harvey & Associates has instituted a claim against Medscheme Holdings Proprietary Limited and three of its employees
in 2008. The allegations concern alleged copyright infringement and a breach of the Medware licence agreement.
The maximum capital amount of the claim as presently pleaded is R390.4 million. An amendment sought by the Plaintiff was
the cause of this. The increased sum has no impact on the merits of the claim which remain the same as before. The parties
are still engaged in private arbitration, however, it is unlikely that the matter will be finalised during the current financial year.
Medscheme Holdings Proprietary Limited will continue to vigorously defend the claim and is confident that there will still be
no liability in this matter.
Legal claim against Allegra Proprietary Limited
Allegra entered into a supply agreement with Medirite in 2015 to install its pharmacy software at each Medirite branch in
South Africa. The project was nearing completion by the end of 2017 upon which Medirite terminated the services during
July 2017. As part of terminating the service, Medirite is claiming all previous fees paid to Allegra based on non-performance
of the agreement.
Management is confident that the claims against Allegra are not seen to be valid and no proof exists to claim the fees paid
to date of R18.2 million. |