Muchinguri In PSMAS Scandal

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WATER, Environment and Climate minister Oppah Muchinguri-Kashiri cashed in US$46 000 in shady circumstances after selling a residential stand situated at Harare’s Borrowdale Estate to the debt-ridden Premier Service Medical Aid Society (Psmas) as more details of the goings on at the medical aid society emerge, Zimbabwe Independent has learnt.

 

This comes as it has emerged Health and Child Care minister David Parirenyatwa is also implicated in the Psmas scandal. Information at hand shows that he did not only receive US$100 000 from Psmas through his private company CHEST but could also have benefitted in many other ways from the medical aid society.

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A forensic audit draft report on the utilisation of Psmas funds dated February 20, 2015, done by Ernst and Young, reveals that Psmas bought 3 041 hectares of land from Muchinguri-Kashiri, although the institution did not need the stand as it is still lying idle.

“Stand 18 Carrick Creagh Township 2 of Carrick Creagh of section 4 Borrowdale Estate was transferred into Psmas’ name on October 13 2010,” reads the report.

According to the report, the purchase of the land was approved by former Psmas chief executive Cuthbert Dube, who was retired by the board in January last year after revelations of his hefty salary and perks sparked public outrage and condemnation from government. Dube was taking home about US$500 000 per month in salary and allowances.

“The land was approved by Cuthbert Dube and there is no indication that the board was involved in the approval of the purchase. The land has not been developed at the time of this investigation,” reads the report.

The audit report also reveals Psmas bought a second-hand Toyota Land Cruiser Prado from Muchinguri-Kashiri for US$60 000.

“We requested for but were not availed with the agreement of sale between Muchinguri and Psmas, according to the asset register, the vehicle was recorded as a Psmas pool vehicle,” states the report.

As part of the former Group chief executive’s benefits Psmas also purchased a house, Lot 1 of 31 Glen Lorne, Manyonga road, for Dube for US$534 120. Renovation costs amounting to US$301 862 were incurred for the property.

In 2012, Psmas purchased three properties worth US$10 696 208 for its subsidiary Premier Service Medical Aid Investment.

The report further states that the secondment of certain government officials to the Psmas board could have given rise to board compromise due to conflicting and competing interests as these representatives were not in a position to subsequently overturn or upset decisions made collectively at Psmas as board members.

On Tuesday, Parirenyatwa and Public Service, Labour and Social Welfare minister Prisca Mupfumira ordered Psmas board chairman Jeremiah Bvirindi to reinstate suspended managing director Henry Mandishona despite him facing a slew of allegations, including prejudicing the financially crippled institution of nearly US$300 000 in a space of four months.

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