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Paidamoyo Chipunza Harare Bureau
Premier Service Medical Aid Society has launched an audit of its financial books from May this year when suspended managing director Henry Mandishona was appointed, board chairman Jeremiah Bvirindi has said.

In an interview yesterday, Bvirindi said his board became suspicious of Mandishona’s conduct when he withheld certain information required by the board for total transformation.

Although Bvirindi could not elaborate what type of information was withheld fearing it could jeopardise their investigations, inside sources believe it could be about his monthly takings alleged to be way above the ceiling set by the interim management, which was led by government representative Dr Gibson Mhlanga.

Allegations are that Mandishona could have been earning up to $40,000, almost four times the new salary structure of $11,000 set by the interim management.

The sources said it was obvious to the PSMAS new board that astronomical salaries which led to the ouster of group chief executive Cuthbert Dube who was earning more than $500,000 per month in salary and allowances continued to haunt the medical aid society.

Dube’s managers also earned high salaries and allowances which ran into millions when combined with his. “The major challenge that we’ve faced as a board was lack of information from the management critical for the successful transformation of PSMAS,” said Bvirindi.

He said his board will remain focused in transforming the society, with a vision to restore its viability and ensure that it regains its status of being the leading health care funder in Zimbabwe.

Bvirindi said this would be done through the board taking control of the running of the society, cost reduction, debt collection and stretch creditors through payment plans.

He said the board will also carry out leadership competency assessment to ensure that the management is not part of the problem, but the solution.

“There is also a need to review the structure, the staff and their mind-sets as some might be living in the past,” said Bvirindi.

He said efforts to redefine the relationship between PSMAS and its investment arm PSMI were at an advanced stage, with work on modalities of operationalising the holding company under way.

The holding company is expected to oversee operations of PSMAS, PSMI and investments from outside the country.

“The holding company has since been registered and what’s left are modalities to operationalise it without creating top-heavy empires for king-makers, that’s costly for the cash strapped society,” said Bvirindi.

Asked how the board would deal with the $3 million labour suit by Dube, Bvirindi said his board would only find a way forward when the issue is resolved by the courts.

Although Mandishona could not be reached for comment yesterday, his loyalists at the medical aid society claim that he was being victimised for closing doors to corruption, from which some senior management were benefiting.