New PSEMAS contract by October
The often abused Public Service Employees Medical Aid Scheme is being reviewed, with the process expected to end by October.
The change in contract was necessitated by misuse, according to finance minister Calle Schlettwein. He said service providers would be given a month to review the new contract before deciding whether they agreed.
Speaking during a press conference yesterday, the minister said because there were loopholes that were open to abuse, it was necessary to alter the PSEMAS contract.
“We have done a review of the PSEMAS contract, using the current contract as a base. We have found a number of provisions that create loopholes. We have amended the contract and the service providers now have a month's time to scrutinise it,” said Schlettwein.
After the month-long grace period, Schlettwein said his ministry would go ahead with implementation of the new contract. “After all is said and done, come 1 September, the contract will be available to all who want to be service providers who will then be given a month to review. New contracts will then be introduced on 1 October 2017.” Schlettwein used the opportunity to allay fears that service providers would not be paid and said his ministry was working to ensure a speedy turnaround with regard to the issuance of payments.
The government would use some of the proceeds of its loan facility with the African Development Bank to pay service providers, he said, adding that all invoices would be closely scrutinised in order to avoid abuse.
“[The] bottom line of the story is that we have all the ability to service all these debts. We want to get back to a point of paying within 30 days,” said Schlettwein.
According to him, the government had made good on its ability to pay service providers and its turnaround time to pay was shortened considerably to 50 days. “We have caught up as fast as we could. We should be reverting to weekly payment frequencies.”
The government had thus far spent N$1.3 billion in payments to creditors according to Schlettwein, who said no payment would be made without proper scrutiny.
“We will not leave things like that and pay with closed eyes, we must go through a stringent process. We have set up teams that are investigating that,” Schlettwein told the meeting.
The change in contract was necessitated by misuse, according to finance minister Calle Schlettwein. He said service providers would be given a month to review the new contract before deciding whether they agreed.
Speaking during a press conference yesterday, the minister said because there were loopholes that were open to abuse, it was necessary to alter the PSEMAS contract.
“We have done a review of the PSEMAS contract, using the current contract as a base. We have found a number of provisions that create loopholes. We have amended the contract and the service providers now have a month's time to scrutinise it,” said Schlettwein.
After the month-long grace period, Schlettwein said his ministry would go ahead with implementation of the new contract. “After all is said and done, come 1 September, the contract will be available to all who want to be service providers who will then be given a month to review. New contracts will then be introduced on 1 October 2017.” Schlettwein used the opportunity to allay fears that service providers would not be paid and said his ministry was working to ensure a speedy turnaround with regard to the issuance of payments.
The government would use some of the proceeds of its loan facility with the African Development Bank to pay service providers, he said, adding that all invoices would be closely scrutinised in order to avoid abuse.
“[The] bottom line of the story is that we have all the ability to service all these debts. We want to get back to a point of paying within 30 days,” said Schlettwein.
According to him, the government had made good on its ability to pay service providers and its turnaround time to pay was shortened considerably to 50 days. “We have caught up as fast as we could. We should be reverting to weekly payment frequencies.”
The government had thus far spent N$1.3 billion in payments to creditors according to Schlettwein, who said no payment would be made without proper scrutiny.
“We will not leave things like that and pay with closed eyes, we must go through a stringent process. We have set up teams that are investigating that,” Schlettwein told the meeting.
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