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.
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.