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PUBLIC servants unions feel blindsided by finance minister Iipumbu Shiimi’s announcement to cut funding to the Public Service Employee Medical Aid Scheme (Psemas) by N$1 billion over the 2023/24 and 2024/25 financial years.

Shiimi in his midterm budget review on Tuesday said the cuts will flow from the expected gains of envisaged reforms to the benefit structure of the scheme.

Namibia Public Workers Union (Napwu) general secretary Petrus Nevonga said Shiimi should have consulted the unions, particularly about the benefits of public servants.

“Any intention to reform or alter any condition of employment of civil servants, in terms of Namibia National Teachers Union (Nantu) and Napwu recognition agreements with the government are subject to negotiations. It is not something that could be decided unilaterally by anybody representing the government,” he said.

Even if the government’s decisions don’t have any implications on workers, it should still be addressed through consultations, he maintained.

“If there are issues in the medical aid process that are seen to be a cost incurred as a result of use by service providers, and it has to be addressed without disadvantaging the civil servants, that is something else,” Nevonga said.

“It is not something that the representative of the government can just decide and implement. It has to be negotiated.”

Teachers Union of Namibia (TUN) general secretary Mahongora Kavihuha said the government has not publicised any documentation to justify Psemas’ reasons for the reduction.

“It is completely premature for the government to think of cutting the funding, more especially when the citizens are prone to more diseases,” he said.

With the pandemic just ended, public servants are still dealing with the aftermath of Covid, he said.

“And the economy is going down and yet you are cutting. If they are cutting, then there will be a system where public servants will pay more.To us that is completely unwelcome,” he said.

PARASITIC PSEMAS

Over the years, the state-funded medical scheme has gobbled up billions.

Its annual budgetary allocation is always around N$2 billion, and since 2015 it has been allocated over N$15 billion.

In 2019, The Namibian reported that Psemas was losing on average more than N$900 million per year to fraud, abuse, waste and collusion.

Psemas is administered by MetHealth Namibia Administrators, who have had administrative preference since the early 2000s.

Psemas has approximately 297 000 beneficiaries, including about 5 000 pensioners.

ANALYSTS TEAR INTO SHIIMI

Meanwhile, Twilight Capital managing director Mally Likukela, along with other social justice activists, criticised Shiimi for his midterm budget review statement, which they say does not communicate the urgent needs of the poor, the unemployed and the youth.

Speaking to Desert Radio yesterday, Likukela said Shiimi failed to come up with measures to ease the financial burden on the unemployed, and continues to fail to make a solid assessment of the impact of social grants.

Shiimi announced on Tuesday that the Food Bank grant increase from N$500 to N$600, became effective this month.

Disability grants for under-18s would increase from N$250 to N$1 300, effective during the 2023/24 financial year, he said.

The old-age grants and orphan grants would rise by N$100, effective 2023/24, should resources permit

“We can’t continue not engaging the citizens because we’ll be missing the target. The people that the budget needs to address problems for must be brought on board. Look, the unemployment issue of the youth is not mentioned, nothing seems to be coming through,” Likukela said.

“When you talk of the social sector, it has groups and the most vulnerable group for me is young people who are unemployed. What are you doing about them? Who is looking after them?”

Meanwhile, political analyst Hozé Riruako says Shiimi’s priority should be trying to safeguard the most vulnerable members of society by providing the requisite safety nets and ensuring the livelihood of everyone.

“You can’t spoon-feed people in your country and this is why the government needed to invest a bit more in the small and medium-sized enterprises sector to ensure people create things for themselves.”

Social justice activist and labour researcher Herbert Jauch says when the original budget was presented earlier this year it had nothing besides the title, and also had very little in it for the youth.