Cuthbert Dube loses PSMI stake

Fired Premier Service Medical Aid Society group chief executive officer Cuthbert Dube has lost his 20 percent shareholding in Premier Service Medical Investments, PSMAS' investment arm, after members overwhelmingly voted against his share acquisition at a special meeting held in Harare yesterday.

The previous PSMAS board led by Meisie Makeletso Namasasu had given Dube 5 percent shares in PSMI for free and allowed him to purchase 15 percent shares at $6 trillion Zimbabwean currency back then.

Hundreds of PSMAS members who attended the meeting in the capital, chaired by the society's interim manager Dr Gibson Mhlanga, felt that Mrs Namasasu's board erred in allowing Mr Dube to own 20 percent stake in PSMI without their approval.

The members also unanimously agreed to form a holding company, which will run the affairs of the society's current and future investments.

Dr Mhlanga said the creation of the holding company was meant to address conflict of interest between the provision of medical services and PSMAS being an insurer at the same time.

He said the holding company will be owned by PSMAS members and supervised by trustees.

Dr Mhlanga said a combination of factors resulted in the society's failure to settle claims, with litigation worth $10 million now pending before the courts and, members facing challenges in accessing service from some service providers.