Dube wins $3,4m salary case against PSMAS

Former Premier Service Medical Aid Society (PSMAS) board chairman Cuthbert Dube last Tuesday won a $3 million arbitral award against the embattled medical aid society and sought to have it registered as a court order at the High Court on Thursday, arguing he was still entitled to his monthly salary and benefits backdated to January 2014.

Through his lawyer Jonathan Samukange, Dube filed the two applications under case number HC3461/15 against Premier Service Medical Investment (PSMI) for $2 070 000 and case number HC3462/15 against PSMAS for $1 380 000, bringing his total claims to $3 450 000.

Dube was fired in January last year over allegations of awarding himself a hefty salary.

The arbitral awards by an independent arbitrator identified in court papers only as D Moyo were made on Tuesday last week.

According to Dube’s contract, besides the salary arrears, he is entitled to among other benefits, a $2 000 clothing allowance per annum, international per diem of $900 per day for self and $300 per day for his spouse, regional per diem of $700 per day for self and $200 per day for his spouse and local per diem of $500 per day for self and $100 per day for his spouse.

He also said he was entitled to two personal drivers, 400 litres of fuel per month for personal use, loan of up to a maximum equivalent to 12 months’ salary, a cook, gardener and housekeeper and $1 200 for groceries per month, clothing allowances of six suits, 12 shirts, 12 ties and six pairs of shoes per year.

Part of the court application read: “This is an application for registration of an arbitral award made on the 14th day of April 2015 in favour of Dr Cuthbert Elkana Dube by the honourable arbitrator D Moyo, in terms of Section 98 (14) of the Labour Act Chapter 28:01.

“Applicant (Dube) is entitled to payment of the arrear salaries to the tune of $2 070 000, (and $1 380 000 for the other case) calculated from January 2014 to date.”

In his judgment, arbitrator Moyo said: “On submissions, the respondents (PSMAS and PSMI) stuck to the terms of reference as spelt out by the conciliator. These are clearly tactical positions by the parties.

To me, it does appear that there can be nowhere the issue between the parties can be resolved without dealing with the issue of the contract of employment between them.

“There is no dispute between the parties that no contract of employment was terminated according to the claimant, therein lies his claim of salaries since January 2014. On the contrary the respondent argues that there never was a contract of employment between the parties.”

Dube argued that in a board communication of March 14 2013, the chairpersons of PSMAS and PSMI communicated the extension of the tenure of office of his office and the statement at the relevant point read: “The committee has extended the tenure of office for Dr C E Dube for a further 10 years with effect from January 1, 2014. We are hereby pleased to advise you that the two boards of PSMAS and PSMI have unanimously approved the extension of office of Dr C E Dube by a further 10 years, effective January 1 2014.”

Arbitrator Moyo said it was not in dispute that Dube had obligations to direct PSMAS and PSMI’s operations and that it was inconceivable how a party doing work for the other for as long a time since 2001, participating and supervising the employees of same, could work for such a long time without a contract or remuneration.

He further said PSMAS’s statement dated March 16 2015, categorically stated that it had no contract of employment with Dube and, therefore, it did not terminate any contract of employment.

“This puts to rest the argument on whether claimant’s contract of employment was lawfully terminated or not. For the avoidance of doubt, the respondent did not terminate any contract with the claimant,” Moyo said before making a ruling in Dube’s favour.

22 Comments

  1. Well done, Cashbert. Show dem….

  2. This shows how corruption is deep rooted in this country.I still believe Cashbert is just being used as dummy with powerful someone.How on earth can one make three million in salary within two years.PSMAS members are not even benefiting.Please Lord help us.

    1. not even two years, 15 months pay

  3. This can only happen in Zimbabwe! A struggling public entity made to bleed further just for the good of an individual… Shame.

  4. Donnybrook Dengate

    What’s so special about that old goat, Cuthbert? He is bleeding the country to death whilde we watch. PSMAS owes service providers millions but that does not seem to concern anyone. Please stop it!

  5. Tora mari Cashbert..maZimba matsaga!!

  6. And you think there will be progress in this country with all this kind of corruption. The judges are getting something from him obviously. Arrears salary of over $2 million accumulated over a a few months plus other perks hmmm and Zimbabweans we say it is ok. His one month salary was enough to pay about 1000 civil servants. Shame of this country.

    1. Its shame on authorities that think they are law unto themselves dube is simply enforcing his rights.

  7. Its a pity to hear and read of an arbitrator awarding such a hefty salary arrears to an individual when Zimbabwe as a country is struggling to raise such an ammount.Where are we going as a nation.Mutasa who aided this rot as a board member with PSMAS & PSMI is out without benefits for serving his ZANU-PF for 34 years,Ko iye Cashbert anotadza kungodzingwa asina chaanacho sei kana kune mikwende yakadaro zvichigoneka

    1. A salary arrears is calculated based on one’s conditions of service as stated in the last payslip and contract of employment. The Arbitrator simply ruled that Dube is entitled to his salary and other conditions of service because his contract of employment was not terminated. The quantum therefore is a matter of what his conditions of service say.

  8. That you think Dube was not entitled to the quantum of remuneration does not mean he is not leggaly entitled to such perks. Dube like any other concerned citizen has the right to approach the courts if he feels his rights are violated. It was incumbent upon his employers and shareholder to ensure that his perks were commensurate with the prevailing economic environment not Dube. They did not do that and cried victim last year. Instead of following the due process of the law in removing Dube from PSMAS they decided to use mob tactics, which will never wash before the courts.

    For the avoidance of doubt Section 12(1) of the Labour Act provides as follows: “Every person who is employed by or working for any other person and receiving or entitled to receive any remuneration in respect of such employment or work shall be deemed to be under a contract of employment with that other person, whether such contract is reduced to writing or not.” It therefore means that the argument by PSMAS lawyers that there was no contract of employment between Dube and PSMAS was hogwash. PSMAS erred by not terminating Dube’s contract, hence it has itself to blame for the cash payout to Dube as per the award.

    According to the Herald report PSMAS has appealed against the award which in itself is ridiculous having regard to the provisions of the law. What PSMAS needs to do is to cut its losses by issuing a letter of termination of Dube’s contract of employment. Until that is done Dube will continue to be entitled to his salary and other benefits. However, should they terminate the contract, the issue becomes payment of damages for wrongful dismissal.

    PSMAS and government are therefore to blame for the current state of affairs.

    1. Are you saying on the basis of a flawed legal provisions, the bonus-less civil servants should continue to contribute to Dube’s terminal benefits?

      1. Which flawed legal provision are you talking about here? That PSMAS owes this money to Dube is down to poor decision making by those that currently lead PSMAS. It is not Dube’s concern as to where the money comes from but those that manage PSMAS. So your argument is flawed and is the reason why PSMAS is in this mess. They think by appealing to the court of public opinion they can evade their legal responsibilities.

  9. But was Cashbert performing his duties for the period the 3m is being claimed?

    1. That is immaterial. An employee only needs to make himself available for work to be entitled to his/her remuneration. Government and PSMAS sent Dube on forced leave, then claimed there was no contract of employment, and behaved in a manner that prevented dube from conducting his duties. All Dube needs to do is demonstrate that he made himself available to perform his duties, and he is entitled to salary and benefits for the period concerned.

      Right now PSMAS is appealing the award by arbitrator instead of taking corrective action with regards Dube’s contract of employment. As we know labour disputes can take up to three years to conclude. Assuming they will maintain that appetite for appealing PSMAS may end up paying Dube over USD10 million. It is such irrational decision making that must be condemned not an individual who is enforcing his rights.

  10. this guy never cease to amaze, Zifa, Psmas, who is he really???

  11. Cashbert Get real

    Mr Cashb must remember that this is a society of struggling poor civil servants contributing hard earned cash so that they access health care. When he bleeds the society and fleece it like this does it ocur to him that the society will fail to pay service providers? Anoda kuti tifire mudzimba here?

    Civil service unions why stand aside and watch? GVT why stand aside and watch. I thot the cabinet put a ceilling on parastatal bosss salaries. Why all this huge amount?

  12. Which got put a freeze on parastatal bosses salaries? Hogwash all of it?

  13. This is not strange because we are all aware that the arbitrators are going to be very rich if the money is paid to that Dube. I know many of these so called arbitrators and how they live.

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  15. Even our own president does not earn that much what’s so special about you cathbert?

  16. Wilbert Mukori

    THIS A CASE OF MISCARRIAGE OF JUSTICE, HOW CAN A CORRUPT CEO WHO IS FLEECING THE POOREST OF THE POOR OUT OF THE VERY LITTLE THEY GET BE ALLOWED TO CONTINUE TO DO SO IN THE NAME OF JUSTICE! THIS IS MOCKERY OF JUSTICE!

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