PAC hears… MOH unable to account for millions in spending for 2017, 2018

Jun 15, 2022 News

– Committee recommends records be digitised
Notwithstanding millions being invested into the Ministry of Health (MOH) every year – the Public Accounts Committee (PAC) was on Monday informed that the ministry has been storing documentation on spending in cardboard boxes – which have caused difficulties in locating documents for spending that occurred in 2017 and 2018.
The Georgetown Public Hospital Corporation (GPHC) on Monday came under scrutiny by the committee where several questions were posed to Malcolm Watkins, the Permanent Secretary (PS) for the MOH and key officials of GPHC.
They were asked questioned pertaining to the procurement of drugs for the hospital, among other issues.

Health Ministry Permanent Secretary, Malcolm Watkins

The officials were questioned on the contracts that were awarded to six suppliers who received payments totalling over $603M, but did not fully honour their obligations, since millions in supplies were outstanding.
PAC member, Dr. Vishwa Mahadeo asked, “Could you say why this happened and what the current status is, and did the contract with the ministry allow paying before the items were delivered?”
In response, the PS stated that approximately $600M was reconciled of the stated sum. In response to why it had happened, he referred the question to the then PS, Ms. Colette Adams.
Due to the fact that Adams is no longer the PS for the ministry, she answered the question based on her recollection. She told the PAC that some of the suppliers, particularly those overseas, had asked for payments upfront. She added that due to the fact that she does not have the documents on hand, she is unable to provide a full answer to the committee.
Dr. Mahadeo then further inquired if the contract had a clause for the suppliers to be paid before they delivered to which Adams responded, “In some contracts, like the overseas suppliers contract, might have had those clause.” As such, the committee requested that the contract with the clause in relation to the aforementioned be shown to the committee.
The current PS then disclosed that they do not have the contracts in their possession but requested a week to provide same.
To this end, the committee was then informed that several attempts were made to locate documents for the year in question, but all efforts have proven futile. Watkins said, “We are having difficulties locating documents pertaining to these years [2017 and 2018] and at this stage, I would like to ask for some time to follow up with you on the status of these documents.”
In response to additional questions from PAC members, Malkia Idal, the Principal Assistant Secretary-Finance (PASF) stated that time is needed to locate the vouchers. She added that the PS and the Minister of Health, Dr. Frank Anthony, are aware of the situation as it relates to where the vouchers are stored.
The PAC was also informed that all of the vouchers for the spending of the GPHC are kept at the MOH.
PAC member Ganesh Mahipaul then questioned what measures have been put in place to ensure that there won’t be a reoccurrence of vouchers being difficult to locate.
In response, the PASF said, “We have added an additional room and we have ventured out where we have the plastic containers so we are no longer using cardboard boxes because some of the vouchers would have been damaged by water or rot, so some areas are torn. But we have an additional room and plastic storage containers so the vouchers are more safe now. So we have put those measures in place.”
To this end, PAC Chair, Jermaine Figueira, intervened and stated that with regard to the documents being stored in plastic containers, the committee had previously advised agencies to not only have a hard copy of documents but also a softcopy. As such, he recommended that the agency scan the documents and create a digitised copy as a backup.
Similarly, PAC member Juretha Fernandes added that the agency should also digitise copies of the documents they have stored as well as those to come in the future.
PS Watkins stated that the recommendation has been noted and that transitioning into having soft copies of documents is on the ministry’s agenda.