Business / Companies
PSMAS debts hits $38 million, CEO earns $250,000 per month
22 Jan 2014 at 01:13hrs | Views
The entire civil and uniformed services, and pensioners of these services, may go without medical aid as the Government has yet to renew the operating licence for Premier Service Medical Aid Society since the society had debts totalling $38 million at the end of last year, including what it had owed doctors, dentists, hospitals and other service providers for more than two months.
Most PSMAS members work for the State, either directly through the civil and uniformed services, or in parastatals, or are pensioners of the State.
But the 600 000 members include many thousands of others. Part of this debt accrued after the society failed to pay the providers their dues within the 60-day period stipulated by regulations governing operations of medical aid societies. The society says it is solvent, since it is owed $44 million by members.
"PSMAS has been failing to pay up service providers on time citing low remittances from members but we heard that they received a substantial amount from Government in remittances for civil servants and we do not understand why they haven’t paid their dues," said the source.
PSMAS group legal and corporate secretary Mr Cosmas Mukwezha said he was not aware that the licence would not be renewed. PSMAS was awaiting a response from the Government after submitting the required paperwork last week.
Recently the society made headlines after it emerged that its chief executive Mr Cuthbert Dube was allegedly earning a monthly salary of $250 000, while his managing director, Mr Farai Muchena takes home $190 000.
Most PSMAS members work for the State, either directly through the civil and uniformed services, or in parastatals, or are pensioners of the State.
But the 600 000 members include many thousands of others. Part of this debt accrued after the society failed to pay the providers their dues within the 60-day period stipulated by regulations governing operations of medical aid societies. The society says it is solvent, since it is owed $44 million by members.
PSMAS group legal and corporate secretary Mr Cosmas Mukwezha said he was not aware that the licence would not be renewed. PSMAS was awaiting a response from the Government after submitting the required paperwork last week.
Recently the society made headlines after it emerged that its chief executive Mr Cuthbert Dube was allegedly earning a monthly salary of $250 000, while his managing director, Mr Farai Muchena takes home $190 000.
Source - herald
