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PSMAS gets $4,25bn bailout

by Staff reporter
09 Nov 2022 at 05:04hrs | Views
Another $4,25 billion has been provided by the Government to bail out Premier Service Medical Aid Society and get the country's largest society, and the one that is used by almost all State employees, back on its feet, paying months of salary arrears to its staff and resuming full operations at its hospitals, clinics and pharmacies.

The money to be administered by its investment arm, PSMI, showed Government commitment to the provision of access to health care to civil servants who constitute 90 percent of membership.

In a statement last night, Public Service Commission secretary Dr Rosemary Choruma said the bailout package was part of broader support by the Government dating back to early this year when the society started to face viability challenges.

The $4 billion was in addition to the US$1,1 million extended towards purchase of drugs recently coupled by a monthly $999 million to liquidate financial obligations.

"Government wishes to inform all stakeholders of a bail-out package which it extended yesterday to Premier Service Medical Aid Society to the tune of $4 258 518 459,18. The bailout package is intended to resuscitate operations at the society and support PSMI, some of whose medical facilities had closed in recent weeks," said Dr Choruma.

"The injection of funds will enable the restoration of operations at the embattled medical insurance group through, among other support, the clearance of salary arrears for PSMI staff.

"Also contained in the bail-out package is support towards the clearing of third-party arrears, which had suffocated operations at the medical aid society."

Dr Choruma said Government remains committed to ensure that its workers access health care as part of its non-monetary benefits extended to its workers.

"This is a clear demonstration of Government's commitment to the provision of access to health care for public servants, who make up 90 percent of PSMAS clients."

This development is expected to enable the re-opening of PSMI health care facilities across the country and restore operational viability.," she said.

"Civil servants who subscribe to PSMAS are expected to be able to access healthcare services from the society's clinics timeously. This bail-out package is part of broader support by Government which began since challenges started at the organisation earlier in the year and is expected to continue until full normalcy is restored."

She said a forensic audit directed by the Government, as the employer, was still ongoing and its findings will inform further governance issues to be taken.

Management at PSMAS has been implicated in financial impropriety, a development that has seen some of them being arrested and arraigned before courts of law.

The board of PSMAS has since been dissolved in July this year at the height of financial malfeasant allegations being levelled against the society.

Source - The Herald