Four Premier Service Medical Aid Society (PSMAS) managers appeared at the Harare Magistrates Court on Thursday on allegations of stealing US$702 386 from the company which was meant for drug purchases.
PSMAS CEO Farai Muchena, 54, appeared before Harare magistrate Stanford Mambanje jointly charged with Victor Chaipa, 49, Cosmas Mukwesha, 50, and Polite Mugwagwa, 41.
Chaipa is PSMAS’ strategy performance executive, Mukwesha group secretary, and Mugwagwa the performance manager.
The four were not asked to plead to theft charges and were remanded in custody pending bail applications.
Allegations were that in 2020, the PSMAS board passed a resolution authorising management to venture into gold trade.
The objective was to generate foreign currency for the procurement of pharmaceutical drugs and other related medical equipment.
The board resolved that staff members from PSMAS’ procurement department were to act as buyers and agents for buying the gold on behalf of the medical aid scheme.
PSMAS had other investment projects including cannabis growing and a shareholding in a bank.
On 18 February 2021, PSMAS executives, acting on the board resolution, allegedly handed over the projects of gold buying, cannabis growing and the micro finance business to subsidiary, Premier Service Holding Company after opting instead to focus on their core business – health insurance.
It is further alleged that on 13 July 2021, Muchena sent a memo to PSMAS’ principal officer requesting funding for the gold project, which had been allocated to the holding company for implementation.
The funding request amounted to US$237,794, with US$108,674 as pre-trading funding, alleges the prosecution.
Muchena is also alleged to have advised PSMAS about the formation of a company styled Claydust, solely for buying and selling gold to Fidelity.
In response, PSMAS disposed of its Zimbabwe Bank (ZB) shares totalling 65,9643 valued at US$38,000 in order to fund the gold-buying project.
Muchena, Chaipa, Mukwesha and Mugwagwa, acting in connivance, then deviated from using the society’s procurement team to buy gold.
Instead, the suspects allegedly engaged 18 private agencies unknown to PSMAS for gold buying.
From 2019 to 2022 the accused persons allegedly received gold from five of the private agencies which were then sold to Fidelity and they realised US $ 702 386,80 and converted the money to their own use.
External auditors, RBM Auditors, were hired to investigate. The audit concluded that the suspects received and converted all the money realised from the sale of gold to Fidelity Printers for their own use.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Pindula News

Four PSMAS Executives Accused Of Stealing US$700k To Buy Gold

A Premier Service Medical Investments (PSMI) loss control supervisor, Bernard Chatindivara, took his own life on Saturday after failing to pay debts he accrued while doing company business.
Chatindivara, who joined PSMI in June 2012, was stationed at Mpilo Central Hospital in Bulawayo.
PSMI national workers committee chairperson Munyaradzi Nharaunda confirmed Chatindiwara’s death to <a href="https://www.newsday.co.zw/local-news/article/200008437/psmi-worker-commits-suicide-over-mounting-debts">NewsDay</a>.
He said the deceased would be buried at his rural area in Chiweshe, Mashonaland Central Province on Wednesday, 08 March. Said Nharaunda:
<blockquote>
Yes, a fellow employee who was a loss control region B supervisor committed suicide in Bulawayo.
He had no fuel for his vehicle to move around, and as a result, he borrowed money for that.
The debts accumulated and the company failed to pay the debts yet he was doing its business.
He was also being threatened by the workers whom he caught doing wrong things. He received death threats.
He once lodged a complaint over (the issue and requested) to be transferred.
We even liaised with our management, but it resisted.
</blockquote>
We don’t know what happened, but eventually, he committed suicide.
On 6 February, Chatindivara wrote to the acting loss control manager Caesar Nyamajiwa alleging he had received death threats for exposing theft at the company. He wrote:
<blockquote>
On January 23, I submitted a report on the missing spare wheels, battery and the waste damaged properties of vehicle NP200 with registration number AEN 0831, which I copied to Mr. S Dhliwayo who forwarded the report to Sibonginkosi Ndlovu to respond. 
During the process, Ndlovu forwarded the report to Itai Mapasure who was not entitled to see it and after seeing it he started to hunt me and threatened to fight or kill me.
Ndlovu had no right whatsoever in his capacity to release the confidential information to Itai.
The case is still under investigation by investigation officer Constable Moyo from Bulawayo Central under reference number IR633/23.
</blockquote>
Chatindivara then sought an urgent transfer to Harare saying he no longer felt safe working in the region. However, his request was denied.
Meanwhile, civil servants on Monday urged Parliament to investigate the Premier Service Medical Aid Society (PSMAS) to establish the cause for the closure of health facilities owned by PSMI.
PSMI is a subsidiary of the Premier Service Medical Aid Society.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

PSMI Worker Commits Suicide Over Death Threats, Mounting Debts

Civil servants have urged Parliament to investigate the Premier Service Medical Aid Society (PSMAS) to establish the cause for the closure of health facilities owned by its subsidiary, Premier Service Medical Investments (PSMI).
PSMAS provides medical cover for almost all State employees as well as other people who are not members of the civil service.
According to <a href="https://www.herald.co.zw/public-workers-want-parly-to-investigate-psmas/">The Herald</a>, civil servants’ premiums are subsided by the government while PSMAS members outside the civil service pay a higher tariff as they do not get a Government subsidy.
The closure of PSMI clinics, pharmacies and hospitals has forced members to move into the private sector and make co-payments even when their cards are accepted.
Representatives of the Zimbabwe Confederation of Public Sector Trade Unions (formerly Apex Council) on Monday appeared before the Portfolio Committee on Public Service, Labour and Social Welfare.
Speaking before the Committee, ZCPSTU secretary general David Dzatsunga said the situation has become dire for civil servants. He said:
<blockquote>
When it comes to PSMAS, most of the PSMI institutions are closed and the situation has become dire for civil servants who cannot afford the high tariffs charged by private doctors and institutions.
… As a committee you can engage with the regulator of medical aid societies (Ministry of Health and Child Care, Air Commodore Dr. Jasper Chimedza), PSMAS and the Public Service Commission.
These are the institutions you may want to engage and get to know what exactly is going on.
</blockquote>
PSMAS and its subsidiaries have also failed to pay workers for several months, with the bulk of company resources reportedly being channeled to management welfare.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Civil Servants Want Parliament To Investigate PSMAS

Members of Parliament want the Insurance and Pensions Commission (IPEC) to regulate the National Social Security Authority (NSSA) and medical aid societies as they are multi-billion-dollar institutions.
This came out during the debate on the Insurance and Pensions Bill, which is currently in the Second Reading Stage in the National Assembly. Harare East legislator Tendai Biti (CCC) was quoted by <a href="https://www.newsday.co.zw/local-news/article/200008150/mps-demand-nssa-regulation">NewsDay</a> as saying:
<blockquote>
Medical insurance companies and NSSA must be regulated by IPEC as was the original amendment in the Bill.
The health system has been compromised in Zimbabwe because of the shoddy services by medical aid societies like Cimas and the Premier Service Medical Aid Society (PSMAS).
</blockquote>
Kambuzuma legislator Willias Madzimure (CCC) said people were losing their money at NSSA and medical aid societies, therefore, there is a need to regulate the institutions.
More <a href="https://zero.pindula.co.zw/">Pindula News</a>

MPs Want NSSA, Medical Aid Societies To Be Regulated

Private healthcare provider Premier Services Medical Investments (PSMI), which is a subsidiary of Premier Services Medical Society (PSMAS), has reportedly closed its 153 clinics across the country after its employees withdrew their labour citing incapacitation.
PSMI Employee Works Committee chairman Munyaradzi Nharaunda <a href="https://www.newsday.co.zw/local-news/article/200005786/psmi-closes-153-clinics-as-workers-down-tools">told NewsDay</a> that their employer has refused to pay their outstanding salaries. He said:
<blockquote>
Yes, we have downed tools nationwide. The workers were willing to engage, but the employer was not.
The last we engaged them, they said they didn’t have anything. We can get back if they engage us and tell us when they will pay us.
</blockquote>
PSMI workers are owed November and December salaries as well as outstanding allowances dating back to July.
Last week on Wednesday, Nharaunda wrote a letter to PSMI acting managing director Farai George Kutoka, saying the money paid to workers was not enough to meet their basic needs. The letter reads in part:
<blockquote>
Even though we appreciate the paltry $333 000 offered last week, schools will be reopening on January 9 and as parents, we are expected to have paid in full and made all other necessary provisions.
We hope for a swift and long-lasting solution to addressing these challenges as we are willing and more than ready to offer our labour and professional service.
</blockquote>
PSMI chairman Wellington Tutisa told NewsDay that efforts were being made to seek the government’s support to clear the salary arrears.
The closure of PSMI clinics is a major setback for civil servants as the healthcare facilities were built to mainly serve them.
In November 2022, <a href="https://zero.pindula.co.zw/govt-extends-4-billion-bailout-to-psmas-psmi/">the government extended a bail-out package of more than ZW$4 billion to PSMAS and PSMI o help restore the company’s operational viability.</a>
The Secretary to the Service Commissions, Rosemary Tsitsi Choruma, said the funds will be used to clear salary arrears for PSMI staff as well as enable the medical insurance company to reopen healthcare facilities that had closed down.

PSMAS Subsidiary Shuts Down Clinics As Workers Down Tools

The Premier Service Medical Aid Society (PSMAS) has refuted reports that it will close next year.
In <a href="https://healthtimes.co.zw/2022/11/27/we-are-not-closing-says-psmas/">a statement</a>, PSMAS, which is the country’s largest medical aid service provider, said the claims are malicious and meant to tarnish its reputation. It said:
<blockquote>
Premier Service Medical Aid Society notes with concern rumours circulating on various platforms of its alleged closure from 2023.
The society categorically dismisses these rumours as not only false, malicious and misleading but bent on tarnishing the organisation’s image and reputation.
Contrary to these misplaced assertions, PSMAS is not closing shop in 2023 or in the foreseeable future.
The regulator of medical aid societies, the society is undergoing a transformational process meant to effectively address the challenges the organization faced in the recent past.
</blockquote>
The company acknowledged that it is facing challenges but insisted that it is still able to fund healthcare needs for its members. It said:
<blockquote>
PSMAS acknowledges the challenges at its investment arm, Premier Medical Services Investments (PSMI).
The responsible authorities are seized with and are working flat out to restore these challenges and restore normalcy at PSMI.
PSMAS wishes to assure its customers and stakeholders that the challenges at PSMI do not have a direct impact on its operational mandate which is to fund healthcare needs for its members.
</blockquote>

We Are Not Closing, Says PSMAS

Premier Service Medical Investments (PSMI) reopened its hospitals, Claybank (Gweru) and West End (Harare) after nurses, doctors and staff returned to work on Friday morning, reported <a href="http://thesunnews.co.zw/claybank-west-end-hospitals-re-opens/">The Sun</a>.
Nurses and Staff were reportedly paid all their outstanding salaries last week and are expecting to receive more money this week.
PSMI spokesperson, Obey Nhakura confirmed the development, saying the two hospitals are ready to assist patients. He said:
<blockquote>
I am happy that Claybank hospital staff are now back at work and ready to assist patients.
We are still assessing the situation at West End to see if all the doctors will return to work by end of the week.
But basically, everything is going back to normal at the hospitals.
</blockquote>
PSMI closed the two hospitals last month after nurses went on strike over unpaid salaries.
The reopening of Claybank and Westend comes after the government last week on Tuesday extended a bail-out package of more than ZW$4 billion to Premier Service Medical Aid Society (PSMAS) to help restore its operational viability.
Secretary to the Service Commissions, Dr Rosemary Tsitsi Choruma said the financial support is expected to help clear third-party arrears, which had suffocated operations at the medical aid society.

Claybank, West End Hospitals Re-open

The government on Tuesday extended a bail-out package of more than ZW$4 billion to Premier Service Medical Aid Society (PSMAS) to help restore the company’s operational viability.
In a statement, the Secretary to the Service Commissions, Rosemary Tsitsi Choruma, said the funds will be used to clear salary arrears for PSMI staff as well as enable the medical insurance company to reopen healthcare facilities that had closed down. Said Choruma:
<blockquote>
Government wishes to inform all stakeholders of a bail-out package that it extended yesterday (Tuesday) to Premier Service Medical Aid Society (PSMAS) to the tune of ZWL$ 4, 258, 518.459.18.
The bail-out package is intended to resuscitate operations at the society and support PSMI, some of whose medical facilities had closed in recent weeks.
The injection of funds will enable the restoration of operations at the embattled medical insurance group through, among other support, the clearance of salary arrears for PSMI staff.
Also contained in the bail-out package is support towards the clearing of third-party arrears, which had suffocated operations at the medical aid society.
This development is expected to enable the re-opening of PSMI healthcare facilities across the country and restore operational viability.
Civil servants who subscribe to PSMAS are expected to be able to access healthcare services from the society’s clinics timeously.
</blockquote>
She said the latest injection of funds to PSMAS follows prior support by Government to the tune of ZW$999 million monthly, 60% of which had been intended for liquidation of financial obligations to creditors, PSMI included; while 40% had been for channelling towards PSMAS operations.
Choruma said a forensic audit of both PSMI and PSMI is ongoing which when completed will help deal with the governance issues. | <a href="https://healthtimes.co.zw/2022/11/08/govt-bails-out-psmi-and-psmas/">ZBC News</a>

Govt Extends $4 Billion Bailout To PSMAS & PSMI

Vice President Constantino Chiwenga, who is the Minister of Health and Childcare, said that the ongoing forensic audit at the Premier Service Medical Aid Society (PSMAS) will address all cases of corruption that have crippled the organisation and prejudiced hundreds of thousands of civil servants and pensioners.
The issue of PSMAS was raised by Members of Parliament in the National Assembly on Tuesday.
The MPs asked Chiwenga what the government was doing to curb corruption at PSMAS which has seen several of its hospitals and clinics shutting down.
Mkoba MP Amos Chibaya (CCC) pointed out that the closure of PSMAS facilities endangers the lives of members. He said:
<blockquote>
It is worrying that civil servants and other would-be beneficiaries are still paying PSMAS but are not getting any joy. PSMAS facilities are closing down and this is endangering people’s lives.
</blockquote>
Other lawmakers also gave accounts of the dire situation and urged the government to act.
In response, Chiwenga said the government was aware of the challenges at PSMAS adding a forensic audit was underway and results will be made public soon. He said:
<blockquote>
I think by now this august house should know the rot that was at PSMAS.
We could not allow the corruption to proceed and the PSMAS board was dissolved or it dissolved itself. We are putting up an interim board.
We know it has troubled our workers and those who have policies but we are addressing that.
There is a forensic audit underway and the issue is still being dealt with by the regulating authority so we cannot speak on how the situation got there. Money has been abused.
On timelines, I would want this to be done as soon as possible. We will ask the head of PSMAS who is working with our permanent secretary when this will be done.
</blockquote>
According to Business Times, civil servants make up most of PSMAS’ 900 000 customers.
However, PSMAS policyholders have been struggling to obtain medical services as hospitals and pharmacies were refusing to honour the membership card, citing non-payment of claims submitted to PSMAS.
In spite of deductions made on their salaries, PSMAS policyholders were required to make payments upfront, often in foreign currency by service providers. | <a href="https://businesstimes.co.zw/mps-fret-over-psmas-rot/">Business Times</a>

MPs Demand Action On PSMAS Decay

Norton Member of Parliament, Temba Mliswa (Independent) has asked the Minister of Health and Childcare, Vice President Constantino Chiwenga, about what the government was doing about the closure of the Premier Service Medical Aid Society (PSMAS) since people were still contributing. Said Mliswa:
<blockquote>
Right now when we are sick, where do we go? It is an emergency issue and our families are on PSMAS.
I have 19 children and their medical aid is on PSMAS. If one of them is sick, what do I do now when we are in this situation? This is a service that we have already paid for.
</blockquote>
In response, Chiwenga said he had directed the permanent secretary of health and the staff to open all PSMAS hospitals which had closed down.
Chiwenga also urged people to pay for the service and those with many children had to pay more. He said:
<blockquote>
We are putting medicines into those institutions so that our people get attended to.
The issue of what should be done now, is a matter which we will be discussing with the Ministry of Finance, the regulator, and all stakeholders concerned, to say in the meantime, whilst the investigations are going on, we want the services because people will not stop to be sick. Therefore, they have to be attended to.
… I am happy that Hon. Mliswa said that he has got 19 kids. If you have got 19 kids and you pay $40 for 19 kids, how do they get treated?
So, these were some of the issues which we are saying if we have got the money, it has to be a maximum.
If you want to have many kids, in fact, I want Members to get this right. Because the population has got to balance, we have got to have children but if you are to have children, you must be able to support them. 
The way you support them is, you increase your contributions. The Government pays 80% and the member only pays 20%. That 20% had become meaningless.
</blockquote>
Earlier this week, Premier Service Medical Investments (PSMI) (Pvt) Ltd announced the temporary closure of the Westend Hospital Casualty Department.
PSMI said the closure is due to internal processes currently underway. | <a href="https://insiderzim.com/mliswa-says-psmas-has-let-him-and-his-19-children-down-chiwenga-says-those-with-many-children-have-to-pay-more/">Insider</a>

Mliswa Says PSMAS Has Let Him And His 19 Children Down

Police on Thursday night arrested top Premier Service Medical Aid Society (PSMAS) officials but the exact number of those nabbed and the charges they are facing have not yet been disclosed.
The officials spent the night in custody and are expected to appear in court this Friday.
Zimbabwe Republic Police (ZRP) national spokesman Assistant Commissioner Paul Nyathi confirmed the arrests last night. He said:
<blockquote>
I can confirm that there are some PSMAS officials that are assisting the police with investigations. We will release a detailed statement tomorrow.
</blockquote>
The Government, which pays a high percentage of each civil service member’s monthly subscription to PSMAS, recently ordered a detailed forensic audit to be conducted following reports of gross mismanagement.
PSMAS members, who contribute towards medical cover, were frequently charged co-payments.
Reports also suggested that money meant for medical care was being channelled into other assets that have nothing to do with health.
The Zimbabwe Confederation of Public Sector Trade Unions (ZCPSTU) representatives sought to block the forensic audit but failed. | <a href="https://www.herald.co.zw/psmas-bosses-arrested/">The Herald</a>

Top PSMAS Officials Arrested

Premier Medical Aid Society’s (PSMAS) has been given the go-ahead to increase its tariffs by 80 per cent.
This was revealed by Health Services Board (HSB) Executive Director, Ruth Kaseke who said that PSMAS was allowed to review tariffs in line with the prevailing economic challenges which is characterised by hyperinflation and acute foreign currency shortages. She said:
<blockquote>Please be advised that Treasury has approved the review of monthly subscriptions in line with the prevailing economic environment.
Accordingly, subscriptions for members have been reviewed by 80% with effect from August 1, 2019, in line with the arrangement of 80:20 (Government Employee).</blockquote>
The development will result in adult dependants subscriptions being reviewed to ZWL$45 per month per dependent, for the main plan.
<h4>More: <a href="https://healthtimes.co.zw/2019/08/22/breaking-psmas-increases-tariffs-by-80/?utm_source=rss&amp;utm_medium=rss&amp;utm_campaign=breaking-psmas-increases-tariffs-by-80" rel="noopener noreferrer" target="_blank">Health Times</a></h4>

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