PSMAS directors paid $602 000 last year

PSMAS directors paid $602 000 last year
Published: 20 July 2017
PREMIER Medical Aid Society (PSMAS) paid its directors a combined $602 000 last year, making its board better remunerated than listed heavyweights such as Delta Corporation, OK Zimbabwe and Innscor Africa Limited.

Delta, with the largest market capitalisation on the Zimbabwe Stock Exchange, paid its directors $226 000 in the last financial year in which sales and net profit reached $483 million and $70 million, respectively.

Innscor, with $311 million revenue and $19 million net profit, paid its directors a combined $509 000 during its last financial year.

OK Zimbabwe, the country's largest retailer by sales, with annual revenue of $472 million in its last financial year and $6 million net profit, paid its directors $134 210, roughly $11 000 per board member.

PSMAS' 12 directors got an average $50 000 for the year, or just under $4 200 monthly in board fees, the health funder's 2016 financial statements published last week show.

PSMAS registered a $27,6 million surplus in 2016, up from $11,8 million the previous year.

Total subscriptions were $242,9 million last year, down from $250,3 million in 2015. Claims were $176 million, while administrative costs rose to $39,7 million from $32,6 million in 2015.

The medical aid society owes service providers $127 million, a situation which has seen its members being turned away from health facilities. PSMAS is itself owed $119 million in unpaid subscriptions.

The medical aid society draws the bulk of its membership from government employees.

Principal government members were 210 919, with 564 498 beneficiaries. Private sector principal members stood at 27 587, with 58 394 beneficiaries.

In 2014, PSMAS plunged into crisis following revelations that its chief executive officer then, Cuthbert Dube, was being paid $230 000 per month.

It also emerged that PSMAS' wage bill doubled to $33 million in a year, with 14 executives accounting for half that amount.

Dube and the PSMAS board were ejected amid the executive remuneration fallout.

The new board, tasked with reforming PSMAS, faced questions over directors' fees during an annual general meeting held late last month.

Board chairman, Jeremiah Bvirindi, told the AGM that directors had put in extra work beyond their routine sittings.

"The figure is not in relation to directors' fees in terms of sitting allowances, no. It also includes evaluation meetings, it also includes even training. It includes meetings to do with reports, and the sitting allowance is $400," Bvirindi told members. 
- fingaz
Tags: PSMAS,


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