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Dr David Parirenyatwa

Lloyd Gumbo Senior Reporter—
Government has appointed a five-member management team to oversee the operations of Premier Service Medical Aid Society. The team of civil servants will not be paid anything above their normal salaries for the role, dispelling fears that PSMAS was going to pay a consultant up to US$1 million to rationalise the society’s operations.
Government has also issued PSMAS with a conditional operating licence.

It has also emerged that Government is establishing an authority to monitor the operations of all medical aid societies, several of which are believed to be violating their operating licenses.

Health and Child Care Minister Dr David Parirenyatwa made these revelations in the Senate yesterday in a ministerial statement on PSMAS.

The names of the five civil servants were not disclosed.
“The interim arrangements are meant to facilitate as smoothly as possible the setting up of proper systems to guide and monitor the operations of the society, protect public funds and ensure that the society services its membership, over 80 percent of whom are civil servants,” said Minister Parirenyatwa.

“It is in this spirit that a special PSMAS interim management team has been set up, consisting of five senior officials from the ministries of Health and Child Care, Finance and Economic Development, Public Service, Labour and Social Welfare, Civil Service Commission and the Office of the President and Cabinet.

“The interim management team members will be on normal duty operations and will not be remunerated from the society.”
Part of the team’s mandate is to arrange an annual general meeting to allow members to have a say in the society’s future.

Dr Parirenyatwa said: “While Government acknowledges that PSMAS is not a parastatal, it felt obliged to intervene after realising that PSMAS’ financial accounts were not in order.”

He said exorbitant salaries and allowances were being paid to senior executives at the society and its investment arm, Premier Services Medical Investments.

This, he said, prompted the ministry to withhold the renewal of PSMAS’ annual operating licence for this year.
“While we stood guided by the enabling Acts and Statutory Instruments, we also were prompted to act by the extraordinary nature of the conditions existing at PSMAS calling for an urgent need to put up interim arrangements to oversee the operations of the medical aid society,” he said in relation to the issuance of a conditional licence.

Manicaland Senator Cde Monica Mutsvangwa (Zanu-PF) said the interim team should look at the “extraordinary subscriptions” the society charged.

Mashonaland West Senator Cde Priscah Mupfumira (Zanu-PF) said almost all medical aid societies were shortchanging subscribers by focusing more on profits than service delivery.

She said Government should introduce a State National Health Insurance Scheme to protect the public.
Dr Parirenyatwa said Government was addressing some of the concerns raised by legislators.

“We are setting up a separate authority to look at all medical aid societies . . . regulating and seeing what they are charging, whether they are in line. We will be at an arms’ length as a ministry but we will be able to monitor.

“We want to look at it in a holistic matter so that it’s not just Premier Service Medical Aid Society. In the end, it’s going to be the whole medical insurance,” said Dr Parirenyatwa.

He said the proposed authority would ensure societies do not turn away people older than 60 years old and those with chronic illnesses.
Senator Nyamayabo Mashavakure said there was a need for societies to convert some of the subscriptions into benefits when contributors did draw their benefit.

Chief Musarurwa asked what kind of package Government would give to the previous PSMAS board considering that it had been dissolved because of alleged corruption.

Mashonaland West Senator Cde Byton Musaka (Zanu-PF) queried why investigations into PSMAS were not handled by the police.
But Dr Parirenyatwa said Government would be guided by a forensic audit after which they would see if there was need to call in the police.

The public spotlight fell on PSMAS when The Herald revealed that the society’s former group CEO, Dr Cuthbert Dube, was taking home over US$500 000 monthly when service delivery was declining and debts were mounting.
Other executives at the medical aid society were earning hefty salaries.