Cartel behind PSEMAS N$4bn spending - Ngurare

Prime Minister Elijah Ngurare has questioned how the Public Service Employees Medical Aid Scheme (PSEMAS) could have spent N$4 billion before the end of the year. Ngurare told parliament last week that he suspects that a well-organised and connected cartel involving medical practitioners could be exploiting the fund.He suggested that an organised network was taking advantage of funds intended to provide healthcare to public servants, with medical practitioners allegedly collaborating in submitting excessive claims.“It cannot be correct that 4 billion is spent before even the end of the year. It cannot be correct,” Ngurare said.The PM did not identify the individuals or medical practices allegedly involved, specify the period covered by the N$4 billion expenditure or indicate how much money was suspected to have been fraudulently claimed.His remarks came on the same day finance minister Ericah Shafudah proposed an additional N$535 million for PSEMAS in the mid-year budget review, increasing its allocation for the 2026/27 financial year from approximately N$3.189 billion to N$3.724 billion, subject to parliamentary approval.Ngurare indicated that the government was investigating the problems affecting the scheme and preparing recommendations for Parliament.The PM said he and Shafudah had discussed the scheme's challenges with the PSEMAS governing council and that recommendations arising from the meeting were being compiled for presentation to the National Assembly.He reminded MPs that the government had previously undertaken to report back on the problems affecting PSEMAS and indicated that the authorities intended to act against suspected misuse of its resources.Ngurare also emphasised the government's responsibility to protect public servants' access to quality healthcare while addressing the scheme's financial and administrative problems.His allegations emerged during a parliamentary exchange about shortages of essential medicines at public health facilities, including medication for hypertension and type 1 diabetes.LPM MP Eneas Mvula had raised concerns about patients moving between pharmacies in search of treatment, prompting Ngurare to address wider challenges in healthcare delivery and the suspected abuse of PSEMAS funds.With an additional N$535 million now being sought for PSEMAS, the government faces growing pressure to explain the scheme's financial requirements while ensuring that efforts to curb suspected irregularities do not compromise healthcare benefits for public servants and their dependents.Shafudah raises fraud concernsShafudah also acknowledged, when she tabled the tabling of the Mid-Year Budget on Thursday, concerns about fraud, overcharging and abuse within the scheme, which the government has assessed as financially unsustainable in its current form.She said the government had completed the first phase of reforms, including establishing a governing council, introducing benefit caps and increasing member contributions.Although these measures had strengthened governance, Shafudah acknowledged that concerns raised by MPs remained unresolved and that further measures were needed to improve accountability and prevent the misuse of funds.The finance minister also disclosed that the current PSEMAS model had been assessed as fiscally unsustainable, prompting plans for additional reforms.Her acknowledgement reinforced concerns that the scheme was facing both growing financial pressures and allegations of irregular claims, although neither minister disclosed the value of suspected fraudulent or excessive claims identified so far.Despite concerns about expenditure and possible abuse, the government is seeking an additional N$535 million to meet PSEMAS funding requirements.The proposed allocation forms part of N$665 million in additional funding for the finance ministry, the largest supplementary allocation in the mid-year budget review.Of this amount, N$535 million would go towards PSEMAS, while N$130 million would replenish the Contingency Fund.If Parliament approves the additional funding, the scheme's allocation for 2026/27 will increase to approximately N$3.724 billion from the original N$3.189 billion.Shafudah explained that the N$665 million represented additional funding requested through the Appropriation Amendment Bill, while other budget adjustments involved reallocating funds within and between existing government votes.According to Shafudah, projected revenue for the 2026/27 financial year has been revised downwards by N$1.5 billion, from N$89.6 billion to N$88.1 billion, largely because of weaker mining receipts and other revenue shortfalls..

Cartel behind PSEMAS N$4bn spending - Ngurare

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Namibian Sun 2026-10-26

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Cartel behind PSEMAS N$4bn spending - Ngurare

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Namibian Sun 2026-10-26

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