Cimas calls for EGM over audit
CIMAS Medical Society board of directors have called for an extraordinary general meeting (EGM) for early April this year to discuss a BDO Chartered Accountants forensic audit report.
An EGM is usually called when some urgent issues arise in a company that requires the input of all the senior executives and the board. EGMs are often considered for emergency measures such as resolving an immediate legal matter or the removal of a key manager.
In a notice, Cimas said the special business of the EGM would be to discuss results of the BDO forensic audit.
“Notice is hereby given that a general meeting of members of Cimas Medical Aid Society, called at the direction of the board in terms of section 9 (2) of the Constitution of the Society will be held on the morning of April 4, 2024 at Celebration Centre, Jubilee Hall in Borrowdale, Harare to transact the following business: Special Business: Notice Convening Meeting, explanation of the background, purpose, and scope of the forensic audit undertaken by BDO Chartered Accountants, presentation of the forensic audit findings and recommendations. Discussion and questions regarding the findings and recommendations of the forensic audit,” reads the notice.
The society said the meeting will also consider and adopt the forensic audit findings as well as to consider any other competent business.
The EGM comes as BDO is in the eye of a storm over a forensic audit conducted at First Mutual Life Assurance last year, whose results are being disputed. First Mutual Holdings Limited, the assurance firm’s parent company, has disagreed with BDO’s findings in the audit report on the basis that its submissions “were not properly considered”.
In December 2023, members of Cimas Medical Aid Society demanded an EGM to discuss allegations of financial malfeasance and imprudent decisions raised by the general manager in a senior management dispute.
The members felt that, while the allegations were raised in an acrimonious exchange between two executives, there was need for an EGM to interrogate whether they were getting value for their money given the nature of the allegations.
At that time, the Health and Child Care ministry said it was studying a report submitted to it by the Cimas board responding to allegations of financial impropriety and unsound decisions made by Cimas Health group general manager Sacrifice Chirisa against management led by chief executive Vulindlela Ndlovu.
Some of the projects that have been described by Chirisa as unviable include the US$2 million renovation of Borrowdale clinic, despite it being a rented building, as well as the renovation of Mashonaland building at US$3 million.-newsday
