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.