Parly calls for Dube prosecution

PARLIAMENT has adopted a motion calling for the prosecution of former Premier Service Medical Aid Society (PSMAS) boss, Cuthbert Dube and executives, who allegedly looted from the health insurer to the detriment of members, mostly civil servants.

VENERANDA LANGA

Cuthbert-Dube

Bulawayo South MP Eddie Cross (MDC-T), who introduced the motion, told the National Assembly on Tuesday that a forensic audit revealed $120 million was lost through paying the executives mega salaries and other benefits.

He said the beneficiaries should be summoned to appear before the Parliamentary Portfolio Committee on Health and Child Care to answer on accusations the maladministration of the institution.

Cross said efforts must be made to recover the $120 million from those implicated, while investigations should be done on the role of the former PSMAS board in the mismanagement of the insurer.

He said the current remuneration policy should be reviewed to bring it in line with government policy.

“The $120 million is equivalent to five years of the budget of Parliament,” Cross said.

“The salary drawn by the former PSMAS chief executive officer, Cuthbert Dube, in his last year of service, before he was dismissed from the position, would have paid the salaries of every single Member of Parliament of this House just from the salary of one individual.

“In fact, six executives over a period of five years drew a total of salaries and allowances worth $64 million. The official salaries over the same period of time were $2,9 million, which means they drew unlawfully $61 million from the resources of the society equivalent to 95% of the amount which was paid to them as individuals.”

PSMAS now wants government to take over its $144 million debt.

According to Cross, in addition to hefty payments, PSMAS management was also drawing salaries from its investment wing and subsidiaries in Zambia, with the expenditures being authorised by the either the then CEO or by the fired board.

Binga North MP Prince Dubeko Sibanda (MDC-T) alleged Health minister David Parirenyatwa, who is said to have benefited $100 000 from PSMAS, lied that he had repaid the advancement.

“A minister improperly collected $100 000 from PSMAS. He claimed that he returned that money when facts on the ground indicate that he did not return it,” he said.
Mufakose MP Paurina Mpariwa (MDC-T) said the PSMAS forensic audit must be provided to Parliament.

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10 Comments

  1. Parliament is wasting its time trying to prosecute Cashbert Dube. The man did not eat the money alone. The Executive arm of govt was heavily involved with this looting at PSMAS. This is not South Africa where govt can be held accountable. The courts will just cover up the case and nothing will happen to Dube. At least Parliament should try for the record.

  2. PSMAS REPRESENTATIVE

    Its high time “a cabal of corrupt beneficiaries” be prosecuted. Hurting most is that Dube’s accomplices are still heavily in control of PSMAS. Imagine Munyonga who gobbled 1.4 million is the Acting CEO, Mutasa who swindled 1.1 million is still Auditor, Mukwesha who embezzled 1.2 million is still Company Secretary.

    this is a big circus. may they be evicted from the system and be prosecuted.

  3. Spare a thought for Civil Servants .How ur they gonna pay for medical fees while their contributions ur squandered by those who ur corrupt and the government is sitting on the fence.Double standards i sholud say.Why not sale their properties to recover some of the money and give them a jail terms .I think this wl go a long way to nip corruption in the bud.

  4. Will this country ever observe the rule of law. Where are we going with all this. The quiteness by the authorities on such matters is worrisome. That is why more people keep on doing the same thing, they know they will never be prosecuted. The NSSA guys they did loot and nothing is being done. The list is just endless. There is seriously something very wrong why such cases just die a natural death.

  5. Operation make PSMAS audit public and implementable.

  6. From a corporate governance perspective PSMAS as a non profit organisation haina mashareholders inemastakeholders who are essentially not as powerful as shareholders;in short PSMAS haina muridzi and so management can do as they wish,moreso if they are cash rich.Kana neni dai ndaiwe CEO kana director I would be tempted to benefit from something chisina muridzi.The ministry of Health should seriously enforce statutory instrument 330 of 2000 .

    1. I agree with open mind this was not owned by government, Simple as that government was merely a client to PSMAS. People should now rethink about this Dube issue morally it was not right, Legally nothing was wrong How?, Imagine you were appointed head of Nyaradzo 10 years ago and your salary was based on client and business growth, Today you will probably be scooping more than 100k a month, its contractual simple as that you made the business grow you did not steal from Zvitunha. So now a bully Client who is not paying his dues as expected but still requires services comes and dictates now. Morally the chefs should have just accepted the company is now bigger and economy is struggling we cant have such contracts and redrafted but not doing that is also not a crime.

  7. PSMAS, ZBC, GMB, CMB, NRZ, TelOne, NetOne, ZMDC, RBZ, Fidelity, ZUPCO, City Councils, Pension Funds…the list goes on and on and on…viava Zimbabwe land of PHDs and Profs

  8. …and of course ZISCO

  9. And this morning am made to pay a shortfall on PSMAS facilities yet I contribute every month to the fund. No essential drugs at its pharmacy and management busy re-branding car parks.

    Kutongwa nembavha kunorwadza.

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