New Ziana-The government has said it will take several steps to revive the Public Service
Medical Aid Society (PSMAS), including paying all its debts and ensuring individuals
found guilty of looting the health insurer are jailed.
This will not be the first time the government is bailing out PSMAS after it released
ZWL$4 billion to the embattled medical society in November last year.
PSMAS runs a medical insurance scheme for government workers, and has other health-
related subsidiaries.
It runs clinics and hospitals around the country and has a membership of about one
million, mostly government workers.
In a statement, the government said the latest rescue measures are meant to safeguard
the health interest of its workers, pensioners and other contributors.
It said these “bold” steps were meant to stop the rot, corruption and mismanagement at
PSMAS and its affiliates as well as help restore it to viability.
“To this end, the Government of Zimbabwe is taking the following steps, among others,
to bring back PSMAS to viability: avail the funds required to pay debts owed by PSMAS
and its affiliates; bring all suspects to account for their actions; take all necessary steps
to bring constitutionality and good governance at its affiliates; business back to PSMAS
and bring PSMAS to its core and immediately ensure the reopening of PSMI Health
delivery facilities. Overall, the government will immediately ensure that PSMI and PSMAS
are fully functional,” it said.
PSMAS facilities such as Westend and Prestige Hospitals in Harare have been closed
for almost seven months now due to cash flow challenges which saw workers going for
months on end without pay.
Mismanagement, malpractices and corruption has resulted in the total collapse of
service delivery by the organisation, said the government.
This is despite the government, which provides over 99 per cent of the contributions, has
been faithfully paying its dues for its workers and pensioners.
According to the government, a recent Forensic Audit conducted on PSMAS and its
affiliates in the public interest revealed that between 2018 and July 2022, the
organisation lost around USD60 million (ZWL$60 billion circa at the current interbank
rate) in contributors funds through theft and mismanagement by the Board and
Management at PSMAS, its affiliates, as well as, from some unscrupulous suppliers and
health service providers.
The audit revealed that in some cases, unscrupulous suppliers and health service
providers were engaging in malpractices in connivance with the PSMAS Board,
management and its affiliates.
“All Medical Aid Societies, Health Service providers and Suppliers involved in these
malpractices must be brought to account,” the government said.
The announcement by the government comes as four PSMAS executives including chief
executive officer Farai Muchena and board member Cecilia Alexander, who is also a civil
servants representative, appeared in court last week for allegedly squandering US$702
386 meant for drug purchases.
New Ziana
