Struggling Premier Service Medical Aid Society (PSMAS) paid Child Care Minister David Parirenyatwa US$100 000 to his private firm, a figure well above his claims.

Parirenyatwa runs CHEST company and the money was paid on May 13, 2014 as claims payment.

PSMAS effected an electronic bank transfer of US$90 000, less 10 percent tax, into CHEST’s CBZ Rusape Branch account number 010222710180015 on May 13, 2014 as claims payment.

According to the Herald, the money paid to Parirenyatwa was well above his claims of patients he had seen at his surgery only amounting to $23 000.

According to these figures, the minister allegedly pocketed $77 000 for services not rendered to the society.

Parirenyatwa, however, said the transaction was above board as PSMAS had not paid him for services rendered to its members for a long time.

“It’s all above board. It is called capitation where a service provider can request an insurer to pay him more than what he is owed,” said Parirenyatwa.

“This money would then be recovered through future claims to the insurer by the service provider. It is a common norm in the medical industry,” he said.

Parirenyatwa said at that time, PSMAS owed him in excess of $55 000 in unpaid claims.

This happened at a time when PSMAS was reeling in debt amounting to about $140 million in unpaid bills to service providers and its pharmacies under the Premier Service Medical Investments (PSMI) were characterised with drug stock outs.
Source: Herald