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PSMAS administration was corrupt - Chinamasa
05 May 2016 at 05:08hrs | Views
Government was reluctant to pay its staggering debt to Premier Service Medical Aid Society (PSMAS) because it was 'like putting money into a bottomless pit', Finance Minister Patrick Chinamasa has said.
Chimamasa said the previous administration was corrupt.
He said this while responding to inquiries by legislators in Parliament on Wednesday.
Asked MP Chimedza " I would like to find out from the Minister of Finance and Economic Development, Hon Chinamasa, when the debt to Premier Service Medical Aid Society (PSMAS) will be paid up.
"We understand that now there is a new CEO at PSMAS but Government, from 2014 and before, owes PSMAS $94 million. From 2015 to date, contribution for employees amounting to $15 million is owed and owed employee contribution is $60 million. So the bulk debt that Government owes PSMAS is $169 million'.
In response Chinamasa said "I am aware that Government owes PSMAS employee contributions but I am not aware of the exact amount.
"So, I cannot confirm or deny whether Government owes the $169 million. As to when it will be paid, we have now started meeting the contributions from March and I think that these payments will be sustained.
"I was saying that we definitely owe PSMAS money in terms of arrear contributions.
"I am not in a position to give the august House the exact figure but on our part, we were reluctant to pay to a corrupt administration because it was like putting money into a bottomless pit.
"So we insisted that they should restructure the management, which I believe there has been a very good attempt to do. So, from March we started making payments to PSMAS but with respect to arrears, we are going to enter into arrangements to pay them over time".
Chimamasa said the previous administration was corrupt.
He said this while responding to inquiries by legislators in Parliament on Wednesday.
Asked MP Chimedza " I would like to find out from the Minister of Finance and Economic Development, Hon Chinamasa, when the debt to Premier Service Medical Aid Society (PSMAS) will be paid up.
"We understand that now there is a new CEO at PSMAS but Government, from 2014 and before, owes PSMAS $94 million. From 2015 to date, contribution for employees amounting to $15 million is owed and owed employee contribution is $60 million. So the bulk debt that Government owes PSMAS is $169 million'.
"So, I cannot confirm or deny whether Government owes the $169 million. As to when it will be paid, we have now started meeting the contributions from March and I think that these payments will be sustained.
"I was saying that we definitely owe PSMAS money in terms of arrear contributions.
"I am not in a position to give the august House the exact figure but on our part, we were reluctant to pay to a corrupt administration because it was like putting money into a bottomless pit.
"So we insisted that they should restructure the management, which I believe there has been a very good attempt to do. So, from March we started making payments to PSMAS but with respect to arrears, we are going to enter into arrangements to pay them over time".
Source - Byo24News
