# Namibia PSEMAS medical aid scheme controversy > Developing situation record from CLSTR: https://clstr.news/situations/namibia-psemas-medical-aid-scheme-controversy > Updated: 2026-10-26T17:00:00.000Z. Sources: 2. Developments: 2. The Public Service Employees Medical Aid Scheme (PSEMAS) in Namibia has come under scrutiny regarding its governance, sustainability, and integrity. Initially, former Health Minister Dr. Bernard Haufiku called for the scheme to be replaced by a National Health Fund (NHF), arguing that the N$ 4 billion program lacks proper governance and fails its members. Haufiku proposed a phased transition prioritizing vulnerable groups, while criticizing government decisions made without stakeholder consultation. Subsequent developments have highlighted severe financial and ethical challenges. Prime Minister Elijah Ngurare raised concerns regarding potential fraud and a “cartel involving doctors and scheme insiders” who may be overclaiming benefits. Former Finance Minister Calle Schlettwein suggested biometric verification to curb misuse by practitioners and members, noting that the ‘extended family principle’ has allowed non-contributing individuals to access benefits. Finance Minister Ericah Shafudah has labeled the current funding model unsustainable. To address these issues and stabilize the scheme, the government has implemented reforms such as a governance council and benefit caps, while increasing the national budget appropriation to accommodate the scheme’s funding requirements. ## Timeline ### 2026-10-26: Namibia PSEMAS medical aid scheme faces fraud allegations Namibian officials are investigating alleged cartel activity and widespread misuse within the PSEMAS medical aid scheme as the government seeks N$535 million in additional funding. 2 sources. https://clstr.news/cluster/namibia-psemas-medical-aid-scheme-faces-fraud-allegations ### 2026-10-07: Namibia: Calls for PSEMAS replacement and administrative clarification Former Health Minister Bernard Haufiku has proposed replacing Namibia's PSEMAS with a National Health Fund, while the Ministry of Health urged citizens to direct scheme inquiries to the Ministry of Finance. 2 sources. https://clstr.news/cluster/namibia-calls-for-psemas-replacement-and-administrative-clarification --- Cite as: Namibia PSEMAS medical aid scheme controversy. CLSTR, https://clstr.news/situations/namibia-psemas-medical-aid-scheme-controversy