Court says home nursing group collapse due to bad management

Elderly home careA massive home nursing group which went bankrupt in 2009 failed because its management did not do their jobs properly, the company court in Amsterdam said on Monday.

The case against the directors and supervisory board of the Meavita organisation was brought by the FNV trade union, which said its members had lost tens of thousands of euros because of the bankruptcy.

Meavita, which had contracts with 60 local authorities, was formed in 2007 following the merger of four separate home nursing groups but never made a profit. The organisation had 20,000 workers and turnover of around €500m a year.

At one point the company was using the services of 385 advisory companies and 1,120 different suppliers.

Some of the company’s assets were wasted on a system allowing patients to make video phone calls with care assistants. Even though no one wanted to use it, Meavita pressed ahead with ordering thousands of pieces of equipment.

In total, some €80m in assets disappeared during the two years that Meavita existed.

In particular, the company court singled out former supervisory board chairman Loek Hermans for criticism.  The court said Hermans, now a senator for the VVD, had not briefed the rest of the board or new members of the executive board about the company’s problems.

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