Saturday 16 November 2019

VVD senator quits over home nursing firm bankruptcy report

Rutte and HermansVVD senator Loek Hermans resigned on Monday after the bankruptcy of a massive home nursing group was partly blamed on his failings.

Meavita went bust in 2009 and failed because its management did not do their jobs properly, the company court in Amsterdam said on Monday.

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

One source told broadcaster Nos there had been no pressure on Hermans to resign. ‘It was his own decision,’ the source said.

No profit

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.

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