NewsDay (Zimbabwe)

Cimas calls for EGM over audit

- BY MELODY CHIKONO

CIMAS Medical Society board of directors have called for an extraordin­ary general meeting (EGM) for early April this year to discuss a BDO Chartered Accountant­s forensic audit report.

An EGM is usually called when some urgent issues arise in a company that requires the input of all the senior executives and the board. EGMs are often considered for emergency measures such as resolving an immediate legal matter or the removal of a key manager.

In a notice, Cimas said the special business of the EGM would be to discuss results of the BDO forensic audit.

"Notice is hereby given that a general meeting of members of Cimas Medical Aid Society, called at the direction of the board in terms of section 9 (2) of the Constituti­on of the Society will be held on the morning of April 4, 2024 at Celebratio­n Centre, Jubilee Hall in Borrowdale, Harare to transact the following business: Special Business: Notice Convening Meeting, explanatio­n of the background, purpose, and scope of the forensic audit undertaken by BDO Chartered Accountant­s, presentati­on of the forensic audit findings and recommenda­tions. Discussion and questions regarding the findings and recommenda­tions of the forensic audit,” reads the notice.

The society said the meeting will also consider and adopt the forensic audit findings as well as to consider any other competent business.

The EGM comes as BDO is in the eye of a storm over a forensic audit conducted at First Mutual Life Assurance last year, whose results are being disputed. First Mutual Holdings Limited, the assurance firm’s parent company, has disagreed with BDO’s findings in the audit report on the basis that its submission­s “were not properly considered”.

In December 2023, members of Cimas Medical Aid Society demanded an EGM to discuss allegation­s of financial malfeasanc­e and imprudent decisions raised by the general manager in a senior management dispute.

The members felt that, while the allegation­s were raised in an acrimoniou­s exchange between two executives, there was need for an EGM to interrogat­e whether they were getting value for their money given the nature of the allegation­s.

At that time, the Health and Child Care ministry said it was studying a report submitted to it by the Cimas board responding to allegation­s of financial impropriet­y and unsound decisions made by Cimas Health group general manager Sacrifice Chirisa against management led by chief executive Vulindlela Ndlovu.

Some of the projects that have been described by Chirisa as unviable include the US$2 million renovation of Borrowdale clinic, despite it being a rented building, as well as the renovation of Mashonalan­d building at US$3 million.

Newspapers in English

Newspapers from Zimbabwe