Dube could pocket $20m

HARARE - Retired Premier Service Medical Aid Society (Psmas) chief executive Cuthbert Dube could walk away with nearly $20 million following his forced exit from the cash-strapped organisation.

Normal human resources practice dictates that terminal benefits should be calculated at between three to four months’ salary for every year served in the organisation.

Dube, who was on Monday forced to quit his post, has been reportedly earning a $230 000 monthly salary.

The ex-Zimbabwe Broadcasting Holdings chairperson, according to the company’s website has been with the medical services provider for the past 27 years, having joined the old Public Service Medical Aid Society in 1986 as an internal auditor and later elevated to chief executive officer in 1992.

What this means is that the debt-ridden medical services provider could be forced to fork out as much as $18,6 million in terminal benefits as part of Dube’s exit package.

Psmas is currently reeling from debts of over $38 million, being unpaid bills for medical services rendered to its members who stand at more than 600 000.

Human resources experts however, said the long-serving executive should have been fired, without any terminal benefits, for failing to fulfil his mandate.

Memory Nguwi, a managing consultant at Industrial Psychology Consultants said Dube did not deserve to be paid as he had failed to fulfil his mandate at the helm of Psmas.

“Since he has left because of a scandal he should not be paid anything, after all he failed to fulfil his role as the head of the company,” he said.

On whether the payments due to the former chief executive would be that high, Nguwi said it was likely the institution would negotiate the package.

“If he was earning a normal salary, then normal procedures would apply, but in this case they might have to look for new parameters as the old ones do not apply.

“His salary is just not normal as chief executive’s average between $10 000  and $15 000 per month,” he said.

Nguwi said the government-owned institution should have taken the disciplinary hearing route, thus allowing it to terminate his employment at no cost to the organisation, if found guilty.

“That is the correct route they should have taken when handling his case. If there is an offence or one is suspected, one is taken for a hearing but in some cases the employer can chose to pay them off and this is usually negotiated,” he said.

“In most cases, top executives are given golden handshakes to save face for the company yet actually they deserved to be dismissed from their roles.”

Dube was on Monday relieved of his duties by the company’s board through retirement, with the changes also claiming the scalp of its chairperson Meisie Namasasu.

Initially, the board had resolved to slash his salary to $60 000 per month, a top market ripple given prevailing rates.

Developments at Psmas come amid an outcry over salaries paid out to top executives at the society who were reported to earn between $120 000 and $230 000 per month.

Altogether, the top management at Psmas were earning at least $1 million monthly.

Comments (24)

Interesting ,just hope he does not get a single cent cause this guy has cause suffering for the thousands for civil servants that used PSMAS.

murehwa - 29 January 2014

In that case they should rescind the forced exit and do the proper termination procedures, otherwise whoever forcibly booted him out maybe working in cahoots together with C. Dube to get a kick-back from the $20m.

Maxwell Christian - 29 January 2014

What nonsense is this? The guy has been stealing from PSMAS since he assumed office. PSMAS contributors are not receiving any services from doctors because Dube has not been paying the doctors who would have attended to PSMAS patients. Now the fool wants $20 million. For what? For looting?

Feldman Bandura - 29 January 2014

Kana nemiwo zvinoitawo here izvi? Amana anhu musadaro...

Tatenda - 29 January 2014

I suspect he hasn't broken any rules and has been wrongfully dismissed. He will claim, and be awarded, much more than $20m because of his cunning and the incompetence of those above him. In Zimbabwe there is only cunning and incompetence.

Jack - 29 January 2014

Memory Nguwi is right in saying the best route to avoid a costly exit package would have been to get Dube to appear before a disciplinary hearing and be charged accordingly. There are indications that he abused his office so it should be relatively easy to find him guilty on a number of charges then subsequently dismiss him and then possibly institute criminal proceedings. BUT the only problem is that he was not acting alone and he will spill the beans if there is any attempt to bring him to book. This scandal has far reaching implications and you can see the powers that be are in hurry to clean this up.

Mazviona - 29 January 2014

Roadwin Chirara the writer of the story says normal human resources practices say Dube will be paid 3to 4 months salary for each year served. This cant be correct. I suspect he is mistaking a termination due to retrenchment where prior service is considered as a cusion to the job loser, normally for reasons that are not of his making. If someone is fired, and has to leave immediately, terminal benefit to talk about are notice of 3 months or whatever his contract stipulates and Cash in lieu of leave accrued to date. Salary to the last working day etc. The reporte should be finding out what sort of contract Dube was enjoying and it will give him a good guestimation of his terminal benefits

Kennedy - 29 January 2014

The audits should include SIRDC, NRZ, Air Zimbabwe, ARDA, UZ among others

Watikiritai - 29 January 2014

well CD has not done anything wrong, remember someone somewhere approved his salary/benefits so we should not put all the blame on him. those who approved his salary should also be accountable.

general tichatonga - 29 January 2014

Let him get that 20 000 000 because this country has always belonged to a few. It once belonged to a minority race before independence and after independence a new breed of a minority group took over.Since independence guys occupying higher offices from military to government departments have been looting and not a single one has ever been jailed. Do you remember Kangai and the GMB saga? The Willowvale scandal, Chikowore and the NOCZIM saga. Zvinavashe and The Army rations? The list is endless.Almost as thick as The Holy Bible, The Revised King James Version, The Amplified copy.We will not comment about NRZ,ARDA and Air Zimbabwe.Out of the entire population less than 500 000 people are enjoying life in Zimbabwe. They are the ones holding too much power and are able to coerce everybody else accept the ruling party to rule. What a shame

SHAVA - 29 January 2014

i wonder why you want to give him that hefty pack, what for hee, you guys you are just publishing you corrupt activities in the media and you want to do it again in our faces in the name of so called pecks. We are not fools and um pretty sure about this guys check out>< everyone politically aligned is not paying tax. why a country like zim with high literacy rate doesn't have a corporate governance code,

wezhira - 29 January 2014

How old is Dube? We would like to know since it matters on the issue of his departure.

the truth - 30 January 2014

You abuse people's contributions, and when this is found out you expect those people to give you a further $20 million for your exit? Are these people going to work and die for Dube?

machakachaka - 30 January 2014

Technically, the person who should have charge Dube is the one who authorised the unreasonable salary. For that person to turn arround and charge Dube would be practically impossible. The Board chairperson's negligence or corruption is what has caused all this. You cannot get to Dube without penalising his boss as well.

Chokwadi - 30 January 2014

Calculate what he was supposed to have been earning,investigate on all his properties acquired during his office period,subtract the amount and payback the debt and send him home.

c mugambiwa - 30 January 2014

normal human resources practices say dat but his actions were not in line with the same human resources practices that yu now want to apply.he fleeced the institute and shld be made to pay back every cent he stole.

pastor - 30 January 2014

worst journalism ever ,dis story is just mere speculation ,20m wen wer looting frm a broke gov ,be serious guys

noel simangolwa - 30 January 2014

Give him the $20 mill or whatever the package is, They the entire civil service must counter sue him for $100 mill. Imagine every month you contribute but when you go to the doctors you have to pay upfront, What was the purpose of your contributions, Counter sue him

Ethan Hawk - 30 January 2014

Do we have a salary ceiling in Zimbabwe? People are just jealous kuti this guy had a good salary and it should be remembered that he had a valid contract of employment. Wrongful dismissals cost money!!

Kuraira - 30 January 2014

thats why i didnt subscribe to any medical aid scheme...

test - 30 January 2014

haana kuba munhu uyu he was getting his salary. Hapana nyaya apa. You force retired him so you should pay for it. I repeat Dube did not steal or fraud the PSMAS he was getting his contractual salary for the services he gave to PSMAS.

mabhunu muchapera - 30 January 2014

Mabhunu you are right this guy was supposed to be charged for what he did wrong. Firing someone for what he thinks he is worth causes serious problems.

Kuraira - 30 January 2014

How can a an organisation allow someone to be on the helm for over 20yrs.

Tiri maStupid - 30 January 2014

Cuthbert Dube and his associates have been on a research programme. How to steal subscribers money on a medical scheme and the effects on the health delivery system of such organisations. A very noble cause! I think what is happening is that he is being given the US $ 20 million for the dissertation, for stationary, data analysis which requires the latest version of software,and hardware. But all of us now know the result. They passed. Just go to any Premier Medical Aid Scheme institution nearest to you and observe the queues for consultation, and medicines dispensing! In the reception areas the chairs are so crowded that a yet to be diagnosed patient with a virulent contagious illness would have inoculated several innocent people for a mini epidemic by the time he or she finally sees the doctor. So If it suits you we could call the reception and dispensary areas as " Inoculation centers for epidemic creation.

Overman Sanatorium - 30 January 2014

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