Psmas confirms spending spree

Brian Chitemba
The Premier Service Medical Aid Society 2016 Annual Report has confirmed that the health insurer splashed US$520 000 on luxury vehicles for senior executives.

This follows Psmas’ rebuttal of an article The Sunday Mail published in April 2017 regarding the vehicle purchase at a time the society was struggling to adequately cover members’ healthcare.

Part of the report presented at the Psmas AGM in Harare last week reads, “As at December 2016, the society had committed to acquire motor vehicles for a total of US$520 000 for its senior executives. A deposit of US$208 000 had been made towards this commitment as at 31 December 2016. “Motor vehicles costing US$328 000 were, subsequently, acquired after year-end, and the remainder will be acquired later on during 2017.”

The Sunday Mail understands that earlier this year, Psmas MD Engineer Tendai Kapumha got a GL350 Mercedes Benz valued at US$180 000; Ms Regina Tendai (head of human resources) was allocated a 2017 Ford Everest; while Ms Margret Zirambe (head of IT) and Mr Marshal Mashavave (head of finance and administration) each received a Land Rover Discovery valued at around US$120 000 apiece.

In a Press statement on June 18, 2017, Psmas said the vehicles were purchased after the company sold its old vehicle fleet bought in 2013.  It said “the money used to pay for these vehicles has not come out of the society’s current cashflows”. The 2016 report also shows that the Mr Jeremiah Bvirindi-led board spent US$601 738 on director’s fees up, from US$431 989 in 2015.

The health insurer racked up a US$710 918 telephone bill, while US$362 390 and US$219 735 went towards travel and fuel expenses respectively.

The report reads: “In terms of Section 17(1) of SI 330 of 2000, the society should have assets, the aggregate of which, on any day, should not be less than the aggregate of liquid funds equivalent to its liabilities. In addition, accumulated funds should be equivalent to not less than 25 percent of gross annual contributions.

“The society’s accumulated funds as at 31 December 2016 were less than 25 percent of gross annual contributions. The society’s accumulated funds as at 31 December 2016 were less than 25 percent of gross annual subscriptions and the total value of its liquid funds were less than the aggregate value of its liabilities.”