PSMAS bosses accused of US$700 000 theft through g...

PSMAS bosses accused of US$700 000 theft through gold deals

Michael Mashiri

Premier Service Medical Aid Society bosses allegedly used society funds to make a small fortune for themselves by diverting funds meant to ensure viability through diversification of revenue streams.

The PSMAS bosses arrive at court accompanied by police

The four appeared in court on allegations of stealing US$702 386.80 from the company after they personalised gold deals that should have been society operations.

Farai Muchena, 54, Victor Chaipa, 49, Cosmos Mukwesha, 50 and Polite Mugwagwa, 41, were before magistrate Stanford Mambanje at the Harare Magistrates' Court accused of theft.

The four are employed by PSMAS as the chief executive officer, group strategy and performance executive, the group secretary and strategy and performance manager respectively.

The State, alleges that, sometime in 2020, the PSMAS board with the objective of generating the much needed foreign currency for the procurement of pharmaceutical drugs and other related medical equipment passed a resolution that its management would venture into gold buying.

It was further resolved that staff members from its procurement department were to act as buyers and agents for the gold on behalf of the Society.

Further PSMAS had other investment projects involving cannabis growing and microfinance business.

On February 18, 2021, PSMAS acting on the board resolution, handed over these projects of gold buying, cannabis growing and microfinance business to Premier Service Holding Company to enable themselves to focus on their core business of health insurance.

On July 13, 2021, Muchena allegedly sent a memo to PSMAS’ principal officer requesting funding for the gold project which had been taken over from PSMAS.

The funding request amounted to US$237 794 with US$108 674 as pre trading funding.

Muchena also advised PSMAS about the information of a company styled Claydust, created solely for the purpose of buying and selling of gold to Fidelity.

In response, PSMAS disposed its ZB shares totalling 65 9643 valued at US$38 000 solely for the funding of the gold project.

After that, Muchena, Chaipa, Mukwesha and Mugwagwa then diverted from the initially agreed position of using PSMAS's procurement team in buying the gold on behalf of the Society.

Instead the four engaged eighteen private agencies unknown to PSMAS for gold buying.

Subsequently from the period 2019 to 2022, the four received gold from five of the private agencies which was then sold to Fidelity by realising cash amounting to US$702 386 80, having misled Fidelity printers that they needed hard cash for the purchase of drugs and pharmaceuticals well knowing that they wanted the money for themselves.

During the period in question PSMAS realised that the Society was not benefitting from the gold buying project as no drugs and pharmaceuticals were being procured for PSMAS hospitals and clinics, yet records showed that gold was being sold.

Consequentially, PSMAS engaged RBM Auditors to carry out a forensic audit covering the period in question.

The audit unearthed that the four recieved and converted all the money that was realised from the sale of gold to Fidelity printers totaling to US$702 386 80 to their own use.

Mambanje ordered the four to appear in court tomorrow for bail application. State is opposing bail.