The Ministry of Health and Child Care has ordered an independent forensic audit into the operations of Cimas following allegations of financial impropriety running into millions of US dollars.
Problems at the country's second largest health service provider after PSMAS saw an extraordinary general meeting due to be held last week being aborted at the last minute as the board sought guidance from the ministry which had expressed reservations on the proposed meeting.
Cimas Health Group has of late been in an eye of a storm after one if its executives, in a boardroom dispute, accused the firm of embarking on unviable expansion projects locally and abroad.
Other allegations raised by general manager, Dr Sacrifice Chirisa, include the awarding of contracts to friends, siphoning of money through renovation of clinics at unsustainable costs, and issuing of loans to top management totalling US$10 million.
The Ministry of Health and Child Care, which is the regulator of all medical aid societies, has since appointed Ralph and Bommet Accounting and Audit firm to carry out a forensic audit.
While the Government is insisting on a forensic audit by an independent audit firm, Cimas seems content with an audit carried out by an accounting firm it has appointed.
Permanent Secretary for Health and Child Care Dr Aspect Maunganidze said as a regulator, they were keen to have an independent forensic audit done at Cimas to clear allegations of financial impropriety.
"We are simply saying let's have a forensic audit done by an independent firm. We are doing this for the benefit of members," said Dr Maunganidze.
"We have received allegations of financial malfeasance from different stakeholders and as a regulator we have to act accordingly.
"It's only an independent forensic audit that can settle the issue.
"We are in the process of writing to them and responding to their letter on the issues we raised."
Cimas board chairperson, Mrs Emma Fundira, declined to comment neither did she respond to inquiries sent to her.
However, the board later issued a statement saying they were content with a forensic audit they initiated.
The board said the planned extraordinary meeting was meant to respond to allegations of financial mismanagement raised by Dr Chirisa, adding that they had advised the regulator of their intended meeting.
They reckoned that earlier on in February, the ministry had directed that the board-initiated forensic audit be suspended and replaced by a ministry-led audit.
The board engaged the ministry and advised it to review its proposed directive, as the board-initiated independent forensic audit had already been concluded by the time of the Ministry's letter.
The board further advised that in the circumstances, the ministry's suggestion of a second forensic audit at the membership's cost was unnecessary, reads the statement.
On April 4, the day of the general meeting, Cimas received two letters from the minister's office advising that the meeting should not proceed.
In view of this communication, the board decided to postpone the EGM pending engagement with the ministry. As stated at the meeting, the board's attitude is that while it had every right to proceed with the meeting, its preference was a situation whereby there is alignment with the Ministry.
Commenting on the statement by the board, former long serving Cimas board member, Mr Chester Mhende, said the medical aid society ought to comply with the directive of the Government and could not hide behind the fact that they are a private entity.
"The Government has a right to protect members and the public. They are not a private company but a society constituted by members and the Government is there to protect the public interest.
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"If they do not want the involvement of the Government as a regulator, why do they approach the central bank looking for foreign currency," said Mr Mhende.
"The guiding principle is that medical aid societies have a tax free status and this is for the public benefit through reduced costs."
In his petition to the parent Ministry, Dr Chirisa, who has since been fired, had raised several allegations against the society which he said formed the basis of his victimisation by the group's chief executive officer, Mr Vulindlela Ndlovu.
Some of the projects he 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 companies in neighbouring countries believed to be "shells".
