PSMAS appears in Parly

PREMIER Service Medical Aid Society (PSMAS) acting chief executive officer Farai Muchena yesterday told Parliament the institution had embarked on an image rebuilding exercise following recent reports of corruption and failure to service debts.

VENERANDA LANGA

Muchena also told the Parliamentary Portfolio Committee on Health that delays by government to renew their operating licence had made the organisation almost ungovernable.

He said PSMAS was owed $5,6 million by government and $30 million by other service providers, hence its failure to service its own $38 million debt to different health service providers.

The previous PSMAS board was dissolved after an alleged scandal where management awarded themselves hefty salaries resulting in CEO Cuthbert Dube earning $230 000 per month.

“For the year 2014, the society presented to government a budget of $172 770 975, but was only allocated $100 000 000, creating a variance of $72 770 975,” Muchena said.

“Government owes PSMAS $5 599 099 in medical aid contributions for 2013, while other service providers owe $30 million and PSMAS itself owes its service providers $38 million which we now plan to start servicing through our debtor recovery plan,” he said.

Muchena said the recovery plan entailed servicing their debt by paying $16 million every month to service providers starting from February 28.

“We have engaged the Public Service and Labour ministry, as well as the Ministry of Finance asking them to be consistent in their remittances. They said they will ensure the $8 000 000 per month they are currently paying will come on time.  We have also made sure our system is able to receive and dispatch money transparently and be able to track utilisation of funds,” he said.

Currently PSMAS has a total membership of 802 072, 671 133 of whom are civil servants and 130 939 from the private sector.

10 Comments

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  2. It’s very embarassing please let people chose what they want it is better to dismantle that organisation they are always collecting money for what?It is hightime civil servants pullout of that nonsense

  3. Was Muchena also not part of the corrupt troop with a whooping $190 000 psmi salary , and with such scandals vana amai achifira mulabour kuchinhoyi uko , thus rubbish , Don’t we need totally new administrators at psmas ,how can we replace a thief with a his counter part hahahahaha , ko vakadzidza zvavakangowandawo wani,

    1. Vamwe havana ganda kumeso chokwadi..this 190 000 dollar a month man can actually stand in front of a parliamentary committee talking of an organisation he abused with such wanton abandon..and this is a doctor. Now if gold rusts what will iron? This fellow should not be seen anywhere near anything whose name starts with a P…even the post office. This is taking being balsy to higher lengths!

  4. So Muchena doesn’t think the exorbitant salaries & allowances paid to PSMAS executives had nothing to do with placing the organisation in financial difficulties. We may be powerless but are not stupid so stop insulting us with these lame excuses. Until the rot is fully revealed you cannot make progress!!!!!

  5. I think the decision to retain Dr Muchena and the Psmas management team is not in the best interest of members and service providers.He was part of the Cathbert Dube led adminstration and was earning 190 thousand dollars,it would have been sensible to get rid of the entire board and management,then bring in new brooms to clean this mess but alas we get the same old people being recycled and given another chance with the cookie jar.Yet we have a lot of suitably qualified personnel looking for these jobs.Zimbabweans never cease to amaze me.This will go down as a missed opportunity to correct things at Psmas come December the debt will have quadruppled and nothing will be done.

    1. @Mbashto-You raise an important point; who made the decision to keep this 190 000 dollar man on? Chokwadi vakuru ve PSMAS vane chokwadi that they need the services of this thief…really?

  6. what happened with the proposed increase in dependants charges? i hope it was cancelled b4 these looters dip their filthy fingers again.

  7. Why are the ministers who approved these salaries not being exposed? Chombo has just been exposed for his part in the city of Harare salaries scandal.Zanu PF shouldn’t act surprised they’ve been looting for years,all the ministers should reveal how they got their wealth & publicly disclose their properties.

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