Govt to pick PSMAS auditors

 Cuthbert Dube
Cuthbert Dube

Paidamoyo Chipunza Health Reporter
Government will soon select an audit firm from a pool of reputable companies that submitted applications to probe allegations against former Premier Service Medical Aid Society group chief executive Dr Cuthbert Dube, a senior official has said.
Dr Gibson Mhlanga, principal director for curative services in the Ministry of Health and Child Care told The Herald that consultations were ongoing with the minister to determine the selection criteria.

“We are currently consulting with the Minister (Health and Child Care) to give us guidance on the selection process, but reputable firms have since submitted their applications,” he said.

Dr Mhlanga said the holding of the society’s annual general meeting was dependent on the interim committee’s completion of other tasks in their terms of reference.
The interim committee was mandated to look into the society’s remuneration structure, critically review its financial position, its constitution and facilitate a forensic audit among other relevant matters.

Dr Mhlanga said they were also awaiting finalisation of a strategic plan for PSMAS, which is currently being done by PriceWaterhouse Coopers (PWC).
“The management team has set up sub-committees to deal with the specific issues and will be working together with PSMAS staff and other players and identified experts within the country in order to come up with effective solutions to the challenges at PSMAS,” he said.

He expressed confidence in his team which was tasked to put PSMAS on a sound footing.
The other members of the committee were drawn from Ministry of Finance and Economic Development, Office of the President and Cabinet, Public Service, Labour and Social Welfare, Civil Service Commission and the Public Service Association.

“We are confident that we will succeed as we have the full support of Government. Issues of corporate governance will be addressed through the restructuring proposals. This process will also be informed by the findings and recommendations that will come from the forensic audit,” said Dr Mhlanga.

He said this process will provide a platform for the committee to have concrete recommendations and proposals to take to the AGM for adoption and confirmation.
“I believe we will be able to carry out this task and I am happy that the management is fully co-operating with the interim management team,” he said.

Dr Mhlanga would, however, not be drawn into spelling out specific time frames from which his team would have completed its task saying that will depend on the speed from which they will be completing various sub components of the terms of reference.

However, Statutory Instrument 330 of 2000 says an interim should last a period not exceeding 12 months.
Dr Mhlanga said the team was targeting to complete the task in the shortest possible time and thereafter call for an AGM.

The AGM will herald the normalisation of matters at PSMAS leading to the appointment of a new board and chief executive officer among other issues.
Dr Mhlanga said even though his team was specifically tasked to deal with issues at PSMAS only, it would share its findings and recommendations with the wider medical health insurance industry.

Problems at PSMAS started when The Herald exposed the organisation’s top management’s remuneration structure, which showed Dr Dube earning an average of US$500 000 every month.

The report drew public outcry and prompting a probe into various Government ministries and parastatals.
Despite these huge salaries and benefits, PSMAS failed to pay up service providers resulting in its members failing to access healthcare.

Following the expose Dube and the society’s chairman were forced to step down. Subsequently, the whole board of directors resigned.
Government then appointed a management, chaired by Dr Mhlanga to run the affairs of the society in the interim.

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