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How Swedish welfare privatising is a powerful lucrative business for the properly connected

Tuesday, 06 December 2011
Okay, we wrote recently how Sweden has radically changed its wealth fare system and is privatising more and more of the system. One argument was that it was expected that when services are provided by the private sector, quality will be great and cost would be lower since there would be competition.
Has this been the case? No! a new trend has emerged in Sweden in the past 7 years and its is the trend for individuals to sponge and get as much money as possible for the system. This not only observed in the education system, but also in the healthcare and elderly care sectors.

Three directors of healthcare company, Carema which provides care for the elderly earned over 120 million last year according to Swedish television. This comes after the company was embroiled in a scandal recently for maltreating tenants in elderly homes which they control.

Here in one of their homes, a 90-year-old woman starved to death at a home in BrŚlanda, diapers were weighed on scales in order to save money, a stroke patient in UmeŚ fell three times and broke his hip, shoulder and wrist without getting to a doctor.

The last month Swedish television and the Swedish daily, Dagens Nyheter revealed a series of scandals in the private equity-owned healthcare company Carema’s different nursing homes.

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Now, Swedish television investigative news program Rapport show that the business model was designed mainly for profits for the bosses. Carema former president Cecilia Daun Wennborg declared last year income above Skr23 million. Her income of the service was more than Skr3 million. In addition, there is investment income of more than Skr20 million, according to the Swedish Tax authority.

Parent company, Ambea’s current CEO, Matti Bergdendahl declared for more than Skr50 million. Also the former Ambea CEO, Ralph Riber earned Skr52 million last year in salary and bonus but above all he also earned in a very generous shareholder programs. His income for service was Skr3.6 million while capital income landed at over Skr48 million.

Ralph Riber was President of Carema Group Ambea for more than five years. He invested about Skr1.6 million in venture capital Company 3i which bought the company. He was served Skr50 million when they sold it last year.

The former main owner says 3i Nordic Director, Tomas Ekman rejected to answer questions and previously promised to give an interview to Swedish television on Monday evening. But later re declined all interview in front of camera.

Instead, he sends an e-mail with any comments that equity investments is always a risk but that the care the company's increased turnover, is as a result of good investment.

He also writes that the healthcare group in 2009 paid Skr112 million in taxes. But according to the company’s income statement, net tax was about Skr80 million and last year was significantly lower.
By Scancomark.se Team




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