Cuthbert Dube shares $22m with PSMAS bosses

ELEVEN Premier Service Medical Aid Society executives, led by former group CEO Dr Cuthbert Dube, splurged US$22,8 million in "executive allowances" outside the payroll and evaded tax, resulting in the company coughing up US$9 million to Zimra.

This is contained in a draft forensic audit report signed off by Ernst and Young Advisory Services (Private) Limited director Mr David Gwande.

In all, PSMAS executives received US$86,9 million in salaries, bonuses and allowances between 2009 and 2013 at a time the company owed creditors US$119 million.

According to the draft forensic audit report conducted between October 2014 and February 2015, Dr Dube, his driver, two secretaries, and 11 executives shared US$22 888 281,28 outside the payroll between 2012 and 2013.

The executives also shared US$24 million in allowances and US$7 million in bonuses through the payroll. The executive allowances paid outside the payroll were drawn from PSMAS and its subsidiary PSMI.

Dr Dube and his team evaded taxes, forcing the company to part with US$9 559 293,30 to the tax authority.

Of the US$22,8 million in unofficial allowances, Dr Dube received US$6,4 million, while former PSMAS group finance executive Mr Ernest Gwinyai was paid US$3,9 million.

Other beneficiaries of the largesse were group operations executive Mr Enoch Chitekedza (US$2,3 million), group risk and audit executive Mr Richard Mutasa (US$1,1 million), group legal executive and corporate secretary Mr Cosmas Mukwesha (US$1,4 million), group marketing executive Ms Anna Mutengwa (US$951 031), and acting Managing Director Dr Nicholas Munyonga (US$1,1 million).

Also to benefit were PSMAS group national operative executive Mr Augustine Khoza (US$983 464), group human resources executive Mr Raphael Paradzayi (US$1,1 million), group CEO office manager Mrs Joyce Munyoro (US$467 109), personal assistant to group finance executive Mrs Florence Tsiga (US$290 977), personal assistant at PSMAS Ms Barbra Melusi (US$142 403) and personal assistant Ms Fungai Chisvo (US$2 324).

Middle managers and general staff were paid outside the payroll to the tune of US$866 021,50 and US$208 510 respectively. Of the allowances paid outside the PSMI payroll, US$690 000 was for Dr Dube's PSMAS Zambia salary.

In 2013, Dr Dube and his colleagues paid themselves US$303 053,81 in executive school fees benefits. From July to October 2012, Dr Dube, his driver a Mr T Hama, and two secretaries  - Mrs Munyoro and Ms Chisvo - were paid US$3 million from both PSMI and PSMAS. US$2,6 million of this went to Dr Dube.

"The above-named employees were also paid through and appeared in the PSMAS payroll for the same period, from July 2012 to October 2012, despite their salary payments having been paid through PSMI.

"We noted that PSMAS and PSMI agreed to split salaries for these employees on a 40/60 percent ratio (PSMAS/PSMI). We, however, noted that according to the PSMAS and PSMI payroll summaries for the months July and October 2012, which we received from PSMAS, these employees received 100 percent salaries from both PSMAS and PSMI," reads the report.

Between 2009 and 2013, Dr Dube was paid a staggering US$23 153 840, 97, representing 26,61 percent of the US$86 999 265,03 shared by the executives. The report notes that several cash payments amounting to US$770 000 were transferred to Dr Dube's bank account without any supporting documents. The transfers were effected based on verbal instructions to Ms Tsiga by Mr Gwinyai.

"We however, noted that these amounts were later classified as personal loans (of) which Dr C E Dube repaid US$35 000 to PSMAS," reads part of draft report. "PSMAS did not have a policy or guidelines relating to salary adjustments percentages, approvals and awards to employees. All salary and allowances adjustments for executives were approved by Dr Dube."