PSMAS Faces Collapse Over Dube Payout

The Premier Service Medical Aid Society (PSMAS) could be facing imminent collapse if the sum of US$2 million awarded to the former Group Chief Executive Officer Dr Cuthbert Dube at arbitration is paid out.


The medical aid society is in debt and is already struggling to procure drugs or pay doctors.

It has become a time of uncertainties for PSMAS members who no longer trust what the future holds for them.

For the past months, PSMAS members have been struggling to get medication at PSMAS pharmacies while some doctors and hospitals are turning them away.

While the situation has already been bad for PSMAS, the latest development in which the labour court arbitrator awarded Dr Dube a whooping sum of US$2 million could collapse the medical aid society.

PSMAS is, however, contesting the ruling with interim manager Dr Gibson Mhlanga confirming an appeal has been lodged with the labour court.

“The institution will not collapse. We are taking measures to date with our lawyers and we have launched an appeal with the labour court, and by virtue of that the ruling will be suspended until the law has taken its course,” said Dr Mhlanga.

PSMAS was on Tuesday ordered to pay the ousted former group chief executive more than US$2 million in salary arrears which accrued since his dismissal in January last year.

The organisation was also ordered to reinstate Dr Dube.