THE Premier Service Medical Aid Society (PSMAS) has taken Gweru City Council to court for failing to remit workers’ $648 731,18 contributions over the past two years. BY STEPHEN CHADENGA
According to the High Court summons case number HC/15 and attached minutes of a special council meeting held on February 24 this year, the debt accumulated between February 2012 and June 2014.
“During the period from February 2012 to June 30 2014 when contract was subsequently terminated, the plaintiff (PSMAS) in terms of the agreement rendered insurance cover to the defendant’s (Gweru City Council) employees,” read part of the summons.
“As a result of the breach, defendant accumulated $648 731,18 as of January 15 2015. This amount is now due and payable.”
PSMAS ordered the local authority to pay an interest on the debt at the prescribed rate from June 30 to date of full payment.
According to the special council minutes, the local authority has since resolved that a delegation comprising mayor Hamutendi Kombayi, town clerk, assistant director of finance and the municipality’s lawyer approach PSMAS for an out of court settlement and agree on a payment plan to clear the debt.
The debt owed to the medical aid society comes at a time council is struggling to pay salaries to its workers.
Employees in grades one to seven received their December 2014 salaries last Friday.
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