The Herald (Zimbabwe)

PSMI board chair, vice granted bail

- Yeukai Karengezek­a Read full story on www.herald.co.zw

PREMIER Services Medical Investment (PSMI) board chairperso­n Colonel Wellington Tutisa and vice chairperso­n Cecilia Alexander (55) who allegedly prejudiced the organisati­on of US$900 000 and over $14 million in undue holiday allowances have been granted bail.

Harare regional magistrate Mr Stanford Mambanje freed them on $400 000 each followed with stringent conditions.

They are supposed to report once every Friday at the police, not to interfere with witnesses and to surrender their passports to the clerk of court.

Mambanje said the State through its witness the investigat­ing officer failed to justify how the two would abscond trial or interfere with witnesses.

The pair which has been in custody for almost two weeks is facing three counts of theft and for contraveni­ng the Public Finance Management Act.

The two were remanded out of custody to June 15 for routine remand.

Prosecutin­g,Mr Lancelot Mutsokoti alleged that Tutisa and Alexander were appointed to the board of PSMI as board chairperso­n and vice board chairperso­n respective­ly for the period covering 2019 to July 2022.

PSMI establishe­d Health Shield Medical Service Limited Zambia as its subsidiary where they were further appointed as directors of that company.

The board of Health Shield Medical Service Limited Zambia passed a resolution to purchase a piece of land being subdivisio­n of number 27 of farm number 298A Lusaka, Zambia, measuring 8, 3474 hectares from Rainbow Tourism Group Zambia limited at US$900 000, which was paid in full.

PSMI, being a subsidiary of PSMAS, paid the purchase price to Rainbow Tourism Group Zimbabwe.

Thereafter, transfer of the property was duly made to Health Shield Medical Service Limited Zambia and a certificat­e of title was duly granted by the Government of Zambia.

Subsequent to the transfer, the sale was challenged by a Zambian citizen through the courts, leading to the cancellati­on of the certificat­e of title which had been granted.

Tutisa and Alexander were supposed to conduct due diligence during the purchase of the property in question and after the cancellati­on of the certificat­e of title, they failed to institute recovery proceeding­s to secure the purchase price.

The offence came to light through a forensic audit carried out by RBM Auditors and resultantl­y PSMI lost US$900 000.

For the second count, it is alleged that between January 2015 to January 2017, PSMI appointed the two as the PSMI board chairperso­n and vice board chairperso­n for three years.

The court also heard that on January 29, 2019, the two were re-appointed as PSMI board members for a second term and contracts of appointmen­t extending to July 2022 were signed to that effect.

The terms and conditions of service of the board members were guided by the 2015 PSMI board terms of reference and board fee structure, which did not entitle holiday allowances to board members.

Sometime in October 2019, the two, together with other PSMI board members namely Richard Gundani, Vimbikai Magnes Kusema, Loveness Dumwa, Alexander Friend, Miriam Chahuruwa, Trevor Shaw, Miriam Chigunduru and Purazi, who are still at large, connived to steal funds from PSMI.

Tutisa and Alexander awarded each board member $27 000 as yearly holiday allowances well-knowing that the board members were not entitled to the allowance.As a result of their misconduct, PSMI lost $243 000.

On count three, the State alleged in 2020 Tutisa and Alexander knew they were entitled to a once off payment of local holiday allowances at the end of their tenure, which in this case was ending in July 2022.

In December 2020, the two awarded themselves undue yearly holiday allowances of $1 505 838 and $1 404 236 respective­ly with the other board members receiving $362 354 each. Consequent­ly, PSMI suffered a prejudice of $5 084 176.

 ?? ?? Suspected robbers who targeted mushika-shika passengers arrive at the Harare Magistrate­s Court yesterday.– Picture: Lee Maidza
Suspected robbers who targeted mushika-shika passengers arrive at the Harare Magistrate­s Court yesterday.– Picture: Lee Maidza

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