THE managing director of Premier Service Medical Investments (PSMI) Dr Tafadzwa Gutu is living large with a lucrative contract that sees him pocket US$23 000 a month in salary and allowances.
While the contract uses US dollars, the pay is in local
currency at the payday interbank rate, but basically, the subscriptions from
several hundred civil servants have to be used just to pay Dr Gutu.
Neither the board of PSMI nor Dr Gutu were prepared to
comment in detail last week. A board member said a forensic audit was in
progress on the orders of the regulator of medical aid societies and its
results would show anything untoward, with Dr Gutu associating himself with
this board comment.
PSMI is the investment arm of the Premier Service Medical
Aid Society (PSMAS), which has been struggling to provide full services to its
members.
PSMAS set up PSMI to own its hospitals, clinics and
pharmacies but it now goes a lot further, amid indications that it is venturing
into mining and microfinance businesses.
At present, several clinics are shut, pharmacies are often
out of stock, and staff are still waiting for their June salaries.
PSMAS, and thus all its operational units, are funded
through subscriptions from members, and most of these are civil servants.
In 2016, PSMAS was rocked by revelations that saw top
management led by Dr Cuthbert Dube earning huge perks running into more than
US$200 000 per month at a time the organisation, which was supposed to be a
non-profit medical aid society, was then struggling to provide service to
members.
According to conditions of service for Dr Gutu, which he
signed for in March 2019 after he took over from Dr Farai Muchena who is now
group chief executive officer of Premier Service Holdings Company, he is
entitled to a basic salary of US$17 000 a month.
In addition to the basic salary, Dr Gutu receives a special
allowance of 20 percent of basic salary, or another US$3 400, to compensate him
for not indulging in private practice as a medical doctor to avoid conflict of
interest.
Further, Dr Gutu receives a housing allowance of US$1 500
every month and an entertainment allowance of US$1 500 every month.
He gets unlimited mobile phone allowance, he just hands in
the invoice, has home internet, again just presenting the invoice, and 500
litres of fuel a month, around US$850 if it is petrol or US$900 a month if he
needs diesel.
He gets three cars off PSMI, so needs the fuel for this
mini fleet.
Dr Gutu’s children can go to very good schools. PSMI will
pay fees up to US$45 000 a year.
Then he and his family can go on holiday, locally or abroad
with US$1 500 a day per diem.
The contracts have risen a bit since August last year. He
now gets 600 litres a month and expenses like his school fees and security
guard are paid from the invoice.
More critically, when his contract expires he will get a
gratuity of 20 percent of his gross-earnings for the duration of the five-year
contract, that is an entire extra year of salary and allowances. A payment of
the equivalent of something near US$300 000 is a generous farewell gift.
When contacted for comment the PSMI board responded as
follows: “As you are aware, the regulator (of medical aid societies) ordered a
forensic audit which is in progress at the moment. Should any untoward or
indiscreet things be happening in any area of the business then we are
confident the audit will unearth it.
“Meanwhile, it would be prudent to just wait for the audit
results, which will be out soon according to the regulator.”
One board member said while the contracts were in United States
dollars, they were paid in local currency indexed to the willing-buyer
willing-seller interbank rate.
Dr Gutu’s second in command, executive director corporate
services Dr Shingayi Mabuto, is also well rewarded.
His basic salary is US$13 200 with a housing allowance of
US$1 300 and an entertainment allowance of US$1 000, according to the March
2019 contract.
Dr Mabuto was the organisation’s finance director before
being promoted to the post of executive director corporate services, which saw
him pocketing these lucrative earnings.
His cellphone allowance is now paid in full when he hands
in the invoices, so are school fees for his children, internet and security.
PSMI is headed by an MD with assistance from two executive
directors and 12 directors, all with perks and salaries.
It was not clear by time of going to print how much the
other directors were earning but general staff had since complained of their
meagre salaries, according to a petition handed to Government pleading for
intervention.
In their petition, the PSMI employees lamented that
management was living large not only at the expenses of employees’ welfare, but
also of service delivery resulting in closure of some facilities.
“Medical centres are poorly stocked without regulatory
emergency medicines and sundries, rentals and utility bills are in arrears,
regulatory licences for premises have been paid late after service withdrawal
by employees.
“Employees’ salaries are in arrears with those entitled to
contractual fuel to enable travel to work now owed more than 12 months’ worth
of fuel,” reads part of the petition submitted to the regulator of medical aid
societies.
As of yesterday, the employees had not received June
salaries.
“Both the board and the management have failed to make PSMI
relevant to PSMAS members. The board approves such contracts yet employees and
patients are wallowing in poverty. This is a shame. They should just do the
honourable thing and resign,” added another source.
Another employee said the finance department had directed
all business units across the country to send all foreign currency received in
payment to head office through Mukuru, and not use the banking system.
“If an organisation channels over 80 percent of its total
revenue towards salaries, then what is left for service provision. This
explains why their pharmacies are always dry because they never earn enough to
sustain their operations,” said another source.
The source added that PSMI requires at least $1,3 billion
every month to sustain its wage bill.
Contacted for comment last Friday, Dr Gutu said: “I think
the matter was addressed (through remarks by his board). You will be aware that
we work with a structure and that matter was attended to and we don’t want to
delve into that again.” Herald
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