Arbitrator orders PSMAS to pay Dube $3 million in outstanding salaries


An arbitrator has ordered Zimbabwe’s largest health insurer – Premier Services Medical Aid Society (PSMAS) to pay its former chief executive Cuthbert Dube outstanding salaries amounting to $3 million, after ruling that his employment contract was not terminated.

The PSMAS board retired Dube in January last year after revelations of his hefty salary and perks sparked public outrage and condemnation from government. He was one of several managers of state-owned firms pocketing millions of dollars in pay while the economy remained stagnant.

Official documents listing the perks of 90 parastatal heads and 91 municipal executives show that the former chief executive was earning $535 000 per month, broken down as $230 000 basic salary — more than 600 times the $370 average for a government worker — and benefits amounting to $305 499.

But according to arbitration papers, Dube was taking home $92 000 every month excluding allowances. He was entitled to $2 000 clothing allowance per year, $1 000 cellphone airtime per month, among other benefits.

Cabinet has since capped salaries and allowances for managers in state-owned companies and municipalities at a maximum of $6 000 per month.

The arbitrator, only identified in court papers as D Moyo, ruled on April 16 that Dube’s employment contract was never terminated and that he should be paid his salary arrears of $2  070 000 and a further $1 380 000 calculated from January last year to date.

Moyo ordered the payment of the outstanding salary to be done “immediately and forthwith”.

Dube, through his lawyer Jonathan Samkange has since approached the High Court for the registration of the arbitral awards.

Most of PSMAS 800 000-plus members are state employees.-The Source


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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.


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