Prime minister Elijah Ngurare has alleged a cartel involving doctors and scheme insiders may be exploiting the Public Service Employees Medical Aid Scheme (Psemas), as the government seeks an additional N$535 million to fund the medical aid scheme.
The allegations have raised fresh questions about oversight and accountability within the medical aid scheme, as the government moves to address what finance minister Ericah Shafudah has described as an unsustainable funding model.
Ngurare alleged that a network of individuals could be working together to exploit the scheme, warning that authorities were keeping a close eye on suspected irregularities.
“It cannot be that already, as we speak, N$4 billion has been used just on Psemas, and that cartel seems to be working very well. It seems somebody is working hand in hand with doctors to overclaim,” Ngurare alleged.
He said he would issue a statement in due course to respond to concerns surrounding Psemas and the alleged dubious dealings, adding that the government was monitoring the situation and working to address the problems.
The allegations come as Shafudah announced additional funding for Psemas during last week’s midterm budget review for the 2026/27 financial year.
Of the proposed additional N$665 million under the Ministry of Finance, N$535 million is earmarked to meet Psemas funding requirements, while N$130 million will replenish the contingency fund.
The adjustment increases the total national budget appropriation from N$87.9 billion to N$88.6 billion.
Shafudah said the government had successfully completed the first phase of the Psemas reform programme through the establishment of a governance council, the introduction of a benefits cap and changes to member contribution structures.
Although these measures have strengthened governance, she acknowledged that concerns raised by members were still being addressed.
“The government will accelerate more reforms to the Psemas, as the current model has been assessed to be fiscally unsustainable,” Shafudah said.
She added that the government remained concerned about allegations of fraud and abuse within the scheme and was taking steps to strengthen oversight, improve accountability and protect public resources.
Meanwhile, Landless People’s Movement deputy chief whip Eneas Emvula questions the additional funding, arguing that the money was needed to address irregularities that had resulted in financial leakages.
“The additional N$650 million that the minister is requesting is to effect reforms within the medical aid system, where there was a big leak due to irregularities,” Emvula said.
“It is very unfortunate that this had to take so long before such a leak could be detected.”
Emvula questions the effectiveness of the oversight mechanisms meant to protect public funds, arguing that the apparent delay in identifying the irregularities raised concerns about accountability.
He also criticises the budget for focusing heavily on administrative reforms without sufficiently addressing the immediate socio-economic challenges facing ordinary Namibians, including elderly people and other vulnerable groups.
He further questions the projected creation of 7 000 jobs through the N$115 million National Youth Development Fund, saying the government had not clearly explained the nature of the jobs or the period over which they would be created.
“It is not even certain how those jobs and what type of jobs will be created over what period of time,” Emvula says.
He argues that Namibia needed a stronger production-based economy capable of generating sustainable employment and improving livelihoods, rather than spending plans without a clear direction for stimulating economic activity.
Separately, the Ministry of Health and Social Services has been allocated N$41 million to cater for 456 medical and dental interns.
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