Zvamaida Murwira Senior Reporter
ZIMBABWE’s largest private medical aid society and health service provider, Cimas Health Group, has come under fire during a major management dispute for embarking on unviable expansion both locally and abroad, award of contracts to friends, siphoning of money through renovation of clinics at unsustainable cost and arrangement of loans for top management that has cost the society more than US$10 million.
Some of the projects described as unviable include renovation of the Borrowdale clinic for US$2 million despite it being a rented building, renovation of a Mashonaland Holdings building budgeted at US$3 million whose costs are now higher than what was used originally to build it, and buying of property in neighbouring countries believed to be “shells”.
Leading the allegations is Cimas general manager Dr Sacrifice Madenyika Chirisa before a labour officer where he is applying for conciliation between him and the group’s chief executive officer Mr Vulindlela Ndlovu whom he is accusing of unfair labour practice.
The case has been set down for hearing before the Labour Officer on 14 December.
Both Mr Ndlovu and CIMAS head of legal service Mr Norman Mangena declined to comment saying the issues were subject to judicial proceedings.
In his application dated 18 November, Dr Chirisa, who is represented by Dr Rodgers Matsikidze, of Matsikidze Law firm, said he felt that he is being harassed for raising a red flag by questioning the rational of embarking on high cost projects prejudicial to the organisation that include instances where the medical aid society’s real assets were being stripped by moving them to a new health private limited company.
“The ultimate result is that the medical aid would lose control of the assets, and because I opposed this, I am being threatened everyday. There are so many things happening at Cimas: the hiring of people who failed interviews, that are picked by the CEO; the creation of posts that do not make sense like head of digital experience; the rise of undeserving people,” he said.
Dr Chirisa said there had been some expansion works that have not been viable to the company.
“The CEO has been pushing for unreasonable expansion of the organisation by awarding contracts to certain contractors. The prices paid, for example, for the renovation of the Borrowdale clinic was US$2 million for a rented building. The company cannot get the money back from the business run in that premise at that cost,” reads the court papers.
“The renovation of the optometry at 60 Baines Avenue is another case in point. Further, the recent awarding to a contractor who initially charged US$3 million to motion fit out the Mashonaland building is more than what Mashonaland used to construct the building.”
Dr Chirisa said there was no arrangement for private loans and mortgages for ordinary staff to motivate them, only for the top brass led by the CEO.
“The monetary losses on the watch of the Cimas CEO, pension fund and reserves are astonishing, running into over US$8 million in losses with no recourse, no warning, (all) under the cover of financial meltdown,” he said.
Dr Chirisa also alleged that the fluctuation of the exchange rate had also been used as a cover for financial manipulations.
“The moving rate has been used to cover poor financial resources management. The movement of money in Botswana is shrouded in mystery as the line heads are not involved in the decision and are asked to sign and at times, the authorisations are done without their knowledge,” he said.
“There has been a push to buy assets in Zambia, which are shells for millions for health care, which I resisted. I have also objected to one pending transaction in Botswana for an ambulance service that is not performing. I questioned the rational of why they would buy an entity that is struggling for millions under the false pretence of entering the Botswana market,” he said.
“I also resisted and was sidelined as a visit was arranged where I was later removed from the trip, yet I am the health expert and general manager.”
Dr Chirisa said the relief he was seeking was to have Mr Ndlovu reined in and desist from victimising him including accusations that he had not come to work when he had secured authority for leave of absence from the CEO.
“There is a clear constructive dismissal hatched as per the above incidences and issues, which have caused me to be negated to the periphery,” reads the papers.
Cimas has since preferred charges of misconduct against Dr Chirisa for “non compliance with the employer’s established policies and procedures,” and “insubordination”.
In a letter dated 28 November, CIMAS accused Dr Chirisa of not fully declaring an interest in a business which the employer was equally involved and that he proceeded to go on leave for two days despite the fact that the CEO had turned it down.
Cimas health group runs a medical aid society where thousands of members pay premiums most of which are denominated in United States dollars.
They also run several clinics, laboratories, ambulance services, radiology, hospitals and specialist services, mental health hospitals, pharmacies and dental practices among others and all these are administered by Dr Chirisa.
CIMAS is the largest medical aid society in the private sector and the second largest in Zimbabwe after PSMIS, which handles most State workers and which has also been in the news over financial disputes.
