PSMAS funnels $100k to minister

By Paidamoyo Chipunza

Health and Child Care Minister Dr David Parirenyatwa was unprocedurally paid $100 000 by struggling Premier Service Medical Aid Society (PSMAS).

Documents show that during the interim management, which was headed by Dr Parirenyatwa’s subordinate Dr Gibson Mhlanga, PSMAS authorised an urgent payment of $100 000 into Dr Parirenyatwa’s account through his private company CHEST.

PSMAS then effected an electronic bank transfer of $90 000, less 10 percent tax, into CHEST’s CBZ Rusape Branch account number 010222710180015 on May 13, 2014 as claims payment.

Sources within PSMAS said the money paid to Dr Parirenyatwa was well above his claims of patients he had seen at his surgery only amounting to $23 000.

According to these figures, the minister allegedly pocketed $77 000 for services not rendered to the society.

Dr Parirenyatwa, however, said the transaction was above board as PSMAS had not paid him for services rendered to its members for a long time.

“It’s all above board. It is called capitation where a service provider can request an insurer to pay him more than what he is owed,” said Dr Parirenyatwa.

“This money would then be recovered through future claims to the insurer by the service provider. It is a common norm in the medical industry,” he said.

Dr Parirenyatwa said at that time, PSMAS owed him in excess of $55 000 in unpaid claims.

This happened at a time when PSMAS was reeling in debt amounting to about $140 million in unpaid bills to service providers and its pharmacies under the Premier Service Medical Investments (PSMI) were characterised with drug stock outs.

On Tuesday, Dr Parirenyatwa together with Public Service, Labour and Social Welfare Minister Prisca Mupfumira ordered PSMAS board chairman Mr Jeremiah Bvirindi, to reinstate suspended managing director Mr Henry Mandishona despite him facing a slew of allegations, including prejudicing the financially-crippled society of nearly $300 000 in a space of four months.

It is alleged that during his short period at PSMAS, Mr Mandishona made unsanctioned donations totalling $126 538,00 of which some of the beneficiaries were paid sums of $19 860.00 twice.

It is also alleged that Mr Mandishona caused a payment of $48 460.00 to LASOF Leadership Institute for training of all PSMAS staff members throughout the country- training that was never done to this date and the money was not paid back to the society.

Mr Mandishona is also alleged to have engaged MaCoTra and Chess Employment to do strategy advisory work without authorisation from the PSMAS board and paid out in excess of $65 000. This was not budgeted for according to the society’s annual budget.

On July 16 2015, a sum of $8 100 was also paid to Mr Mandishona for unspecified purpose, with no supporting documents.

In addition, he allegedly amended his contract from a salary of $13 000 to $19 350 and instead of having one company car valued at $80 000, he allegedly altered his contract to two cars one valued at $100 000 and another valued at $125 000.

Mr Mandishona made several other transactions single handedly, worsening the society’s financial status.

It is upon this background that the Bvirindi led board; sent Mr Mandishona on forced leave pending investigations. According to PSMAS statement a fortnight ago, Mr Mandishona was scheduled for a disciplinary hearing instituted by the board tomorrow (Friday).

But Government through Dr Parirenyatwa and Minister Mupfumira ordered the board to reinstate Mr Mandishona on the basis that these allegations did not warrant the board to suspend the managing director.

“Having looked at the pertinent issues we are convinced that their nature, scope and magnitude can be resolved whilst the society continues to run under the leadership of the board and the management of the substantive managing director,” reads part of the Ministers’ joint statement.

Meanwhile, PSMAS board of directors is allegedly divided over reinstatement of Mr Mandishona with those seconded by Government insisting that they cannot defy a directive by their employer.

PSMAS has been facing a myriad of challenges ranging from a ballooning bebt which now stands at $140 million and part of its challenges were as a result of looting by senior management.

Failure by the society to settle claims with service providers resulted in them denying treatment to PSMAS members leaving them with no option but to resort to PSMI facilities- PSMAS’s investment arm- which was also facing challenges in stocking medicines. The Herald