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>

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

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

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>

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