Members of the Premier Medical Aid Society (PSMAS) voted to dissolve their holding company after discovering that it was involved in a massive $60 million fraud. The decision came during a special annual meeting where a forensic audit report revealed shocking details about the misuse of funds.
The audit showed that between 2018 and July 2022, millions of dollars were lost due to fraudulent activities linked to the holding company. This company, which was supposed to integrate health and financial services, instead became a vehicle for corruption. As a result, PSMAS members have been left without access to essential healthcare, despite having paid for medical aid coverage.
The holding company employed about 70 people and was intended to manage various services, including Premier Service Medical Investments (PSMI), PSMAS Zambia, and Premier Service Microfinance. However, the forensic audit, led by investigator Reynolds Muza, uncovered that the company had failed in its duties, ultimately harming the very people it was supposed to help. Instead of managing resources to ensure healthcare for members, the holding company used funds for luxurious perks, including high salaries, international trips, and other unnecessary expenses.
Muza explained that the holding company had been taking 10% of every member’s contribution, with 3% going to the company itself, 5% to PSMI, and 2% to Premier Service Microfinance. This diversion of funds significantly weakened the society’s ability to provide necessary medical services, leaving members struggling to get basic healthcare like medications and hospital treatments.
The audit also revealed that executives within the company were deeply involved in fraudulent schemes. Thousands of statements uncovered by the audit could potentially be used to prosecute those responsible. However, Muza advised that while legal action might take years, members should consider directly reclaiming their money from the medical professionals involved in the fraud.
One of the most alarming findings from the investigation was the discovery of over 34,000 identical medical procedures allegedly performed on the same day. Most of these cases were reported in Harare and Gweru. Additionally, nearly 300,000 multiple claims for different medical procedures performed on the same day were found across PSMAS centers. In Harare alone, over 60,000 identical procedures were claimed for the same members on the same day, raising serious concerns about the integrity of the claims system.
These findings have left PSMAS members outraged and determined to take back control of their healthcare. By shutting down the holding company, they hope to protect their rights and ensure that future contributions are used appropriately.
