Embattled Premier Services Medical Investments (PSMI) shut down 120 of its 155 facilities last month as the entity battled to settle a four-month salary arrears bill in a turbulent period that culminated in the closure of its flagship West End and Claybank hospitals in Harare and Gweru respectively as workers downed tools, the Zimbabwe Independent revealed.

The closure of the facilities has also been marked by the arrest of PSMI executives on allegations of defrauding the entity of millions of United States dollars at a time when the entity is struggling to offer services to its clients.

PSMI chief executive officer Farai Muchena, managing director Tafadzwa Gutu and other executives Victor Chaipa, Cosmas Mukwesha and Shingai Maputo in September appeared before the courts facing fraud charges.

With a subscriber base of about two million clients, the dramatic collapse of PSMI, particularly over the past four months, sources briefed this publication, is largely symbolic of the paralysis gripping Zimbabwe’s health delivery system.

A trove of documents gleaned by the Independent in a period stretching over four months shows that PSMI had only 35 of its 155 facilities still functional by October 21, 2022, when the workers declared incapacitation and subsequently stopped reporting for work.

bribery allegations levelled against the executives have since triggered a forensic audit into the affairs of PSmI by the Zimbabwe Anti-Corruption Commission, the CID and the Zimbabwe revenue Authority, this publication can further reveal.

relating to the number of facilities which are still operational, a letter dated october 21 2022 by PSmI acting managing director Margret Maulana to staff members, shows that the entity, with 29 medical clinics dotted around the country had closed 21 of them, while only four of its 19 dental clinics were still functional.

In the correspondence, also furnished to the PSmI chairperson, directors, head of departments and the Premier Services medical Association (Psmas) managing directors, Maulana noted that widespread closures were sparked by “declaration of incapacitation” by restive workers.

PSmI is a unit that was formed in 2003 in pursuit of Psmas’ blue ocean strategy to forward integrate medical insurance into medical services provision.

“The declaration of incapacitation has resulted in most PSmI units closing down as practitioners and supporting staff could not afford to continue reporting for duty.

-Newsday