Corruption hits Psmas business badly

HARARE - Premier Service Medical Aid Society (Psmas) is staggering under the weight of its corruption scandal, with the medical insurer  beginning to lose business, Daily News has learnt.

The latest crisis tests not so much Psmas — whose vainglory appears impervious to events — but the strength of Zimbabwe’s anti-corruption efforts, which in the space of just months shows signs of maturing.

Psmas was said to be bleeding clients, with the corruption allegations driving the firm’s business deep into the ground, and revenue falling into negative territory amid a leadership crisis.

For example, University of Zimbabwe (UZ) lecturers and workers have ditched Psmas, and so have many firms.

“After the employees of the UZ indicated that they had ceased getting worthwhile services from Psmas, the institution engaged Psmas management about the issue,” UZ spokesperson Dennis Rwafa said.

“Consequently, the affected employees applied to different service providers of their own choice.”

An official at the State university said their employer switched their medical cover to First Mutual and Cimas Medical Aid Society.

“The university distributed a circular informing us to choose between First Mutual and Cimas.  Some made their choices and those who failed were automatically placed on Cimas,” the official said.

Farai Muchena, Psmas acting chief executive officer, played down the loss of business.

“I can confirm to you that UZ as an employer organisation left Psmas at the start of the crisis,” Muchena said.

But individuals at UZ are coming to us saying they are not happy that their employer removed them from Psmas. Also, they are saying they are not getting the services that Psmas offers from other service providers.”

Asked how many organisations have left Psmas, Muchena said: “It’s UZ and one or two individuals. We are not in a panic mode yet. Everything is under control. UZ was not a big organisation but it was an important stakeholder. As of Friday last week, our membership stood at 802 072.”

The media in recent weeks revealed that Psmas top management was gobbling at least $1 million in basic monthly salaries at a time the member-driven enterprise was reeling under a $38 million debt.

As at December 31, 2013, the society owed service providers $38 million in unpaid bills for medical services rendered to its members.

Documents seen by this paper showed that  the  former Psmas group chief executive Cuthbert Dube, earned a basic monthly salary of $320 000 as at 2012.

The documents showed that Dube was not only taking a $320 000 basic salary as at December last year, but was entitled to a $500 000 long service-award payment every five years, $50 000 travel allowance per trip and another $20 000 for his partner, unlimited fuel and free medical aid — yet he was also raking in $40 000 weekly towards medical treatment.

Comments (18)

Look into ZIMRA WHERE A LADY MANAGER GETS OVER $15000 and is posted in Kenya out where she gets daily living from ZIMRA. iTS SERIOUS. i BET HER BENEFITS WERE NOT DECLARED TO OPC

Joe Raki - 20 February 2014

It seems the writer has an intention of bringing down PSMAS. Assuming it goes down is it beneficial to the nation or it will be worse off than the salary gate damage. Can someone point out something constructive that can be done to correct past wrongs than just sniffing for some more wrong. The executive was fired, forensic audits are to be carried out why don't you leave the organisation for a while till the report is out.

Tichaona - 20 February 2014

No wonder why there seems to be struggles and wars in order to get the above posts, including political pressure. Incumbents then refuse to retire . They end up donating a lot of money to sport .

JACKSON Mushayapokuvaka - 20 February 2014

After all this government should look into the question of rent takuvara veduwe nema landlords varikucharger marentals asingaite

Nyamhangambiri - 20 February 2014

Iwe Tichaona unenge waidya nePSMAS.rega vanhu vaite zvavanoda nemari dzavo.they are free to join any medical aid yavanoona ichivabatsira .Ibasa remapepa nhau kutiudza what eva is happing .the chickens are coming home to roast for you.

nelson - 20 February 2014

Iwe Tichaona unenge waidya nePSMAS.rega vanhu vaite zvavanoda nemari dzavo.they are free to join any medical aid yavanoona ichivabatsira .Ibasa remapepa nhau kutiudza what eva is happing .the chickens are coming home to roast for you.

nelson - 20 February 2014

Iwe Tichaona unenge waidya nePSMAS.rega vanhu vaite zvavanoda nemari dzavo.they are free to join any medical aid yavanoona ichivabatsira .Ibasa remapepa nhau kutiudza what eva is happing .the chickens are coming home to roast for you.

nelson - 20 February 2014

Iwe Tichaona, munhu wese in the country is free to do what he feels, handiti ndiyo freedom yacho? Saka why are you defending PSMAS as if Dube aikupawo mbichana pamazimari ese aya? Shut up and let people speak, we want change....

Kauchy - 20 February 2014

Nyamhangambiri should relocate to Hopely, Ushewokunze, Carldonia or Seke where rentals are next to nothing.

Mavis - 21 February 2014

hi

tendai matongo - 21 February 2014

What is important to me is, what is happening to Mr. C Dube and all his cronies. Tichava torera mazimba avo here senyika, coz imari yenyika kaiyi yaakavhara. We need to retrieve all the loot.

S. Takarwireyi - 21 February 2014

PISMAS haichina basa pliz the fund must be directlty controlled under Parirenyatwa group of Hospitals and make sue that there are hospitals and clinics well furnished and equipped so that members of PISMAS enjoy their services without any hindrance. this will lead to a national home grown solution since the government will see an improved healthcare facility. unlike creating a management team which gobbles over 30million of the subscribers' funds. only thirty million can help to improve national healthcare infrastructure in all provincial and district hospitals to the extent that even ordinary Zimbabweans will benefit from this development. why do we create silly institutions that are there to deprive citizens of their hard-earned cash through such sickening and corrupt activities. every subsidiary must have strategies that link national development not a mere group of individual development it shows that even Cuthbert Dube himself is just a certificate holder and this shows that universities sometimes produce people who are not economically national strategists and we need to improve on our recruitment criteria based on merit not nepotism or based on political affiliation. how cn we employ a person because he was in the national army whilst he do not have any experience in business management and he do not even know how to apply corporate governance in his field of work. let us take zimbabwe as a business entity ready to make profit not just to amass ourselves with individual wealthy that is to make some economic resources not used to full capacity. pliz utilise the knowledge tanks from our universities , apply the use of the law to protect every investment, expand from wherever you start by being innovative, empower the youth and enjoy the fruits from a well planned economic activity.

dzvombi - 21 February 2014

PISMAS haichina basa pliz the fund must be directlty controlled under Parirenyatwa group of Hospitals and make sure that there are hospitals and clinics well furnished and equipped so that members of PISMAS enjoy their services without any hindrance. this will lead to a national home grown solution since the government will see an improved healthcare facility. unlike creating a management team which gobbles over 30million of the subscribers' funds. only 30 million can help to improve national healthcare infrastructure in all provincial and district hospitals to the extent that even ordinary Zimbabweans will benefit from this development. why do we create silly institutions that are there to deprive citizens of their hard-earned cash through such sickening and corrupt activities. every subsidiary must have strategies that link national development not a mere group of individual development it shows that even Cuthbert Dube himself is just a certificate holder and this shows that universities sometimes produce people who are not economically national strategists and we need to improve on our recruitment criteria based on merit not nepotism or based on political affiliation. how cn we employ a person because he was in the national army whilst he do not have any experience in business management and he do not even know how to apply corporate governance in his field of work. let us take zimbabwe as a business entity ready to make profit not just to amass ourselves with individual wealthy that is to make some economic resources not used to full capacity. pliz utilise the knowledge tanks from our universities , apply the use of the law to protect every investment, expand from wherever you start by being innovative, empower the youth and enjoy the fruits from a well planned economic activity.

dzvombi - 21 February 2014

Dzvombi yo idea is best to none.lets do it the Funeral policy way.mari ngaibatwe ichinanga kuchipatara so that drugs and other things that may be needed nevarwere will be available always.kwete zvenyu zvekuda kuwana kubira varwere mari dzavo

nelson - 21 February 2014

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