The Sunday Mail
Kuda Bwititi
Government could soon take over management of Premier Service Medical Aid Society to restore viability and ensure members benefit optimally.
Cabinet recommended the take over in early November 2015, and the Attorney-General’s Office is exploring modalities under a five-stage plan.
The Public Service, Labour and Social Welfare Ministry, according to the proposal, will assume oversight and administrative functions, with the Health and Child Care Ministry retaining its regulatory and licencing mandate.
PSMAS board appointments will become the State’s prerogative.
Documents seen by The Sunday Mail show that Step 1 entails publishing findings and recommendations contained in the latest forensic audit report on the health insurer to “highlight that continued schisms at PSMAS” have aggravated its default position.
A default medical aid society is one in a precarious financial position and operating ultra vires good administrative and accounting practices.
The institution will have also failed to comply with prescribed minimum financial requirements.
Step 2 sees the Secretary for Health announcing this default position, with PSMAS’ registration cancelled and an interim manager appointed in Step 3.
In Step 4, Government amends the law to empower the Health Ministry to demand and enforce good corporate governance at all medical aid societies based on international best practices.
The fifth stage will see the interim manager tweak PSMAS’ constitution and implementing the forensic auditor’s recommendations.
Public Service Minister Prisca Mupfumira told this newspaper, “We have submitted our proposal on this possible take-over to the Attorney-General’s Office. Cabinet made this recommendation, and we are now seeking guidance from the AG’s Office on how it can be enforced legally.
“What we are concerned about is that PSMAS members are bearing the brunt of the poor corporate governance of a group of people with selfish interests. The squabbles at PSMAS have gone on for too long. The executives continue to play dirty tricks to ensure they remain in office.”
She continued: “Implementation of programmes like Zim-Asset is at risk because PSMAS carries with it the dependents of most primary members who also contribute to the country’s economy.
“We are concerned that PSMAS does not seem to take medical insurance as a priority. For example, they allocate 60 percent of what they get to Premier Service Medical Investments, which is an investment arm, and allocate less to their core business of medical insurance.”
Human resources expert Mr Memory Nguwi said the plan “would be the best way forward if it is done according to the book”.
“I do not see any problem with such a take-over. It may actually be the best solution. However, it should be done according to the law. Proper procedures must be followed so that Government does not send wrong signals.
“In addition, the owners of PSMAS – civil servants – have to be consulted since they form the largest component of Psmas membership.”
Mr Sifiso Ndlovu – a member of the Apex Council, an umbrella body comprising all civil service representatives – said, “We are worried that our voice is not being heard on issues relating to PSMAS. Firstly, the PSMAS board is not engaging us.
“There are various platforms like workshops and seminars where they can interact with us and map the way forward together. Therefore, we feel wide consultations should be done before any Government take-over.”
PSMAS has been in turmoil since it emerged in 2013 that the previous Dr Cuthbert Dube-led management was earning huge salaries and allowances. As group CEO, Dr Dube was taking home some US$500 000 monthly, even as service delivery declined.
PSMAS has roughly 900 000 members, mainly civil servants, and many are turned away by health service providers over non-payment of claims.
