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Zvamaida Murwira Senior Reporter
The board of Cimas medical aid society has been summoned by Government, which has given it five days to answer allegations of financial malfeasance and imprudent decisions raised by Cimas health group general manager Dr Sacrifice Chirisa.
The board was directed to write a comprehensive report responding to the allegations made in a petition sent to the Health and Child Care Permanent Secretary Dr Aspect Maunganidze by lawyers representing Dr Chirisa.
Dr Chirisa called for Government intervention, which he felt would save the society from wanton abuse of the company by chief executive, Mr Vulindlela Ndlovu.
In his petition to Dr Maunganidze, Dr Chirisa accused Mr Ndlovu of embarking on unviable expansion projects locally and abroad, awarding of contracts to friends, and siphoning of money through renovation of clinics at unsustainable costs, among a slew of allegations.
Dr Chirisa had also taken Mr Ndlovu before a labour officer alleging unfair labour practices and victimisation, which he felt was based on the fact that he had opposed some of the decisions.
In an interview, Dr Maunganidze said the ministry, as the regulator, summoned the board and demanded answers.
“We received a letter from lawyers representing Dr Chirisa. We have since held a meeting with the board last Friday where we have asked for a proper and comprehensive report regarding the allegations,” said Dr Maunganidze.
“It will be only after we have seen that report when we will determine whether there is need for Government intervention.
“We asked them to have submitted the report by next Wednesday.”
There have been calls from some stakeholders on the need for an independent regulatory body for medical aid societies to safeguard subscribers.
At the moment, the Permanent Secretary of Health and Child Care is the regulator in terms of a Statutory Instrument published a few years ago, but there is a view is that the Ministry was saddled with a lot of other issues to attend to.
At some point, the Insurance and Pensions Commission (IPEC) had proposed to include medical aid societies under its purview, given that they either formally or in effect provide health insurance.
However, the move was resisted by some medical aid societies.
Commenting on the need for a regulatory body for medical aid societies, Dr Maunganidze said they had since come up with a Medical Aid Societies Bill to deal with those concerns.
The Bill seeks to have a stand-alone regulatory body for medical aid societies.
It is presently before Parliament and expectations are that it would be concluded in the session that is underway.
“At the moment, the Permanent Secretary is the regulator through an SI,” said Dr Maunganidze.
In their petition, lawyers for Dr Chirisa led by Dr Rodgers Matsikidze of Matsikidze Law Firm said their client approached a labour officer requesting for conciliation and cessation of unfair labour practices that stemmed from his decision to oppose some of expansion projects that he felt were unviable.
The same complaint was raised with the Cimas medical aid society board and Cimas Health Group.
“Instead of the two entities requesting full details of what is transpiring, rather our client has received a notification to answer to some frivolous and vexatious allegations now meant to eliminate him before the allegations he raised in his application for conciliation (are dealt with),” reads part of the letter addressed to Dr Maunganidze.
“Our client requests the Ministry of Health and Child Care as mandated by the law to urgently investigate Cimas Medical Aid Society for allegations he raises in his application to Ministry of Public, Service, Labour and Social Welfare.
“He believes that the medical aid society has diverted from its core business and the Cimas Health Group (Pvt) Ltd has lots of maladministration issues. Our client is prepared to also testify.”
Some of the projects that have been described as unviable include the renovation of Borrowdale Clinic to the tune of US$2 million, despite it being a rented building, renovation of Mashonaland Building at US$3 million whose costs are now higher than the amount used to construct it, and buying of property believed to be “shells” in neighbouring countries.
The case has been set down for hearing before the Labour Officer this Thursday.
In his application, Dr Chirisa said he felt he was being harassed for raising the red flag by questioning the rationale of embarking on high cost projects prejudicial to the organisation including instances where the society’s real assets were being stripped by moving them to a new health private limited company.
“The CEO has been pushing for unreasonable expansion of the organisation by awarding contracts to certain contractors. The prices paid, for example for the renovation of the Borrowdale Clinic was US$2 million for a rented building.
“The company cannot get the money back from the business run on that premises at that cost. The renovation of the optometry at 60 Baines is another case in point. Further, the recent awarding to a contractor who initially charged US$3 million to motion fit out the Mashonaland Building is more than what Mashonaland used to construct the building,” he said.
Dr Chirisa also said monetary losses under the watch of Dr Ndlovu, pension fund and reserves are “astonishing, running into over US$8 million in losses” with “no recourse, no warning (all) under the cover of financial meltdown”.
Further allegations are that the fluctuation of the exchange rate has also been used as a cover for financial malfeasance.
“There has been a push to buy assets in Zambia, which are shells for millions for health care, which I resisted…
“I have also objected to one pending transaction in Botswana for an ambulance service that is not performing. I questioned the rational of why they would buy an entity that is struggling for millions under the false pretence of entering the Botswana market,” said Dr Chirisa.
Cimas has since preferred charges of misconduct against Dr Chirisa of “non-compliance with the employer’s established policies and procedures” and “insubordination”.
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