US$1m bail-out for PSMI gives relief to civil serv...

US$1m bail-out for PSMI gives relief to civil servants

Government’s US$1 million package for Premier Medical Investments for the restocking of its pharmacies has relieved some anxiety for civil servants.

“I have a chronic condition and I need medication every month. With the salaries we earn, paying US$27 for those medicines every month is beyond my capacity,” said Helen Kavhai, a civil servant in Harare.

Other civil servants said that efficient service from PSMI was one of the positives in working for Government and if that is no longer there, it is highly detrimental to their welfare when they are already working for very low remuneration.

PSMI is a subsidiary of the Premier Service Medical Aid Society which provides government subsidized health insurance for most civil servants including the uniformed forces.

Acknowledging receipt of the bail-out, the PSMAS board said the capacitation from government would go a long way in resolving current operational challenges at PSMI.

“PSMI pharmacies, renal clinics, optometry practices and clinical laboratories have since received part of the imported stocks to address the perennial stock out challenges that were affecting service delivery.

“Through Government efforts, PSMI is also currently working with NatPharm in ensuring consistent availability of affordable medicines to the convenience of the PSMAS members and the nation at large,” said the board.

Other civil servants said they are worried about the non-remuneration of PSMI staff as this could mean that they would be stranded at the worst possible time due to strikes.

The medical insurance entity has been going through several challenges of with accusations that staff had gone for three months without salaries. They have also been accused of charging shortfalls to members, a development which had led to PSMAS reviewing members subscriptions upwards as inflation had caused shortfalls and co-payments.

“The PSMI Board acknowledges the fact that employees have gone for three months without salaries and how the unfortunate circumstances continue to affect the employees’ well-being and their capacity to report for work and effectively discharge their duties,” said the board.

Employees claim they had written several letters to their employer to understand the status of their unpaid salaries, a complaint which they say was often met with resistance, intimidation and threats of victimization.

As a result, most employees had been evicted from rented accommodation, while some had their children sent back home from school over failure to pay fees. Some who had direct stop order payments for funeral assurance were in arrears and those with bank loans were facing litigation over defaulting.

PSMAS, which is the country’s largest medical aid insurance firm by subscription numbers, is also being accused of failing to remit statutory obligations such as Pay As You Earn (PAYE) deducted from workers’ salaries and overborrowing.

Another accusation is that the firm had engaged middlemen which pushed up the cost of procuring drugs.

PSMAS executives, among them chief executive Farai Muchena, Victor Chaipa, Cosmas Mukwasha, Shingai Mabuto and Tafadzwa Gutu are on bail on a number of charges that include fraud, forgery and theft charges.