Govt Extends $4 Billion Bailout To PSMAS & PSMI

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:

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.

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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.

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. | ZBC News