STATEMENT ON MEASURES TO RESTORE PSMAS FUNCTIONALITY AND RE-ESTABLISH ORDER IN THE HEALTH INSURANCE AND DELIVERY SYSTEM

1. The Government of the Republic of Zimbabwe is deeply disturbed by the phenomenon of corruption, mismanagement and other malpractices that have been taking place at Premier Service Medical Aid Society, its affiliates, health service providers and suppliers over the years. This has resulted in the total collapse of service delivery by the organisation. This is despite the fact that the Government of the Republic of Zimbabwe which provides over 99% of the contributions has been faithfully paying its contributions for its workers and pensioners.
3. A recent Forensic Audit conducted on PSMAS and its affiliates in the public interest revealed that between 2018 and July 2022, the organisation lost around USD60 million (ZWL$60 billion circa at the current interbank rate) in contributors funds through theft and mismanagement by the Board and Management at PSMAS, its affiliates, as well as, from some unscrupulous suppliers and health service providers. In some cases, unscrupulous suppliers and health service providers were engaging in malpractices in connivance with PSMAS Board and Management and its affiliates.

Further analysis showed that had these funds not been misappropriated, PSMAS should have been in a position to provide adequate and satisfactory services as expected by its clients.

3. The Second Republic is determined to safeguard the health interest of its workers, pensioners and other contributors as well as the national health system by taking bold steps to stop the rot, corruption and mismanagement at PSMAS and its affiliates and help restore it to viability. To this end, the Government of Zimbabwe is taking the following steps, among others, to bring back PSMAS to
   viability:
   (1) avail the funds required to pay debts owed by PSMAS and its
   affiliates;
   (2) bring all suspects to account for their actions;
   (3) take all necessary steps to bring constitutionality and good
   governance back to PSMAS and its affiliates;
   (4)bring back PSMAS to its core business
   and;
   (5) to immediately ensure the reopening of PSMI Health delivery facilities. Overall, the government will immediately ensure that PSMI and PSMAS are fully functional.
5. It has further come to the attention of the Government of Zimbabwe that the phenomenon that has been observed at PSMAS involving the abuse and misappropriation of contributors’ funds, accompanied by high contributory fees not commensurate to the services being provided is also rife in other Medical Aid Societies operating in Zimbabwe. In this regard, the Government of Zimbabwe, as the regulator, will take decisive measures against these organisations and use all lawful means to bring all culprits to book. All Medical Aid Societies, Health Service providers and Suppliers involved in these malpractices must be brought to account. It is the duty of Government to ensure accountability of all health institutions and to safeguard the health and finances of all its citizens and residents.
7. The Government of the Republic of Zimbabwe wishes to assure all Zimbabwean citizens and residents of its commitment to run an efficient, effective and reliable health delivery system characterised by honesty, accountability and transparency.
9. END OF STATEMENT