The Public Accounts Committee (PAC) is investigating circumstances under which Shs13bn went missing from National Medical Stores (NMS) financial record yet it wasn’t accounted.
MPs think there was collusion to hide this money.
To this end, PAC Chairperson, Nandala Mafabi has summoned the Auditor General-John Muwanga (pictured), Accountant General- Lawrence Ssemakula, Permanent Secretary Ministry of Health- Dr Diana Atwine and officials from National Medical Stores (NMS) to respond to queries on why they allegedly colluded to hide Shs13bn from NMS’ financial records.
This was after officials from NMS and Ministry of Health appeared before PAC to respond to audit queries. It was observed that there are discrepancies in the quality and quantity of uniforms procured by NMS for medical personnel across the country.
“Accountant General you are responsible with the Auditor General; why you removed Shs13.5bn from the accounts of 2018/2019 and you haven’t told us in your reports the reason yet the money remains unaccounted for. In that line, we want colleagues to have another meeting on Monday with NMS, PS Health, Accountant General himself and Auditor General himself,” Mafabi said.
The probe carried out on three financial years between 2016 to 2019 discovered discrepancies in the uniforms procured including delayed deliveries, poor quality of uniforms, items failing to conform to demands by various health facilities, price inflation and absence of Memorandum of Understanding between the Ministry of Health and NMS to procure the uniforms.
In 2016/2017, NMS received Shs3bn and deducted 8% of the services to undertake the procurement but ended up procuring uniforms worth Shs3.015bn, with MPs questioning where NMS received the excess Shs15.460M they spent on uniforms.
The Committee also discovered that NMS diverted money meant for procurement of essential drugs to instead purchase uniforms, some of which didn’t meet the needs of the health facilities they were sent to.
Alex Byarugaba (Isingiro South) called for a complete overhaul of NMS saying the entity has failed to procure medical items to suit the needs of their clients.
“There is a problem in NMS, a very big problem. These uniforms you are talking about, we can easily audit them. In my district, they sent six orthopedic coats each costing Shs80,000 yet we don’t have orthopedic department at the health center IV,” the lawmaker said.
He added: “Last week, they sent drugs that are expiring in April. If we are talking about robbery which other robbery is bigger than that? I think there is need to revisit NMS in a much bigger way. Whenever they order for drugs, most of the drugs aren’t received. They ask health workers to fill the discrepancy form, and they never follow up the discrepancies.”
In his ruling, Nandala said that NMS will be required to explain why some of the uniforms procured in 2016 were delivered in 2017, the supplied uniforms for three years without having a procurement plan and tasked Moses Kamabare, General Manager NMS to produce certificates of completion of procurements or refund the Shs13.5bn.
“Accountant General, you are responsible for sending money wrongly where there was no MOU, no deposit account, and where there was no accountability that also applies to the Ministry of Health. NMS you have never issued certificates of completion of work to Ministry of Health, you are still liable for Shs13.52bn unless those certificates are done, you are still liable,” Mafabi said.
On his part, the Accountant General Ssemakula was faulted for continuously sending money without NMS furnishing him with a procurement plan, sending money without NMS and Ministry of Health having a Memorandum of Understanding in place.
For the, the Auditor General, Muwanga will be tasked to explain why he issued a qualified opinion to the Ministry of Health over the uniform deal yet he issued an unqualified opinion to NMS over the same matter.
“The Auditor General, you are responsible to tell us how you issued one entity unqualified opinion and another one on the same matter a qualified opinion,” said Nandala.
Calls to have NMS’s Kamabare handed over to Police were rejected by Mafabi who revealed that when the Committee assigned two Police Officers attached to Parliament; Olot Michael and Nathan Gumikiriza to visit health facilities in Arua, Gulu, Jinja, Lira, Mbale, Soroti, Hoima, Fort Portal in December 2019, the officers didn’t undertake the assignments.
“My police did not work yet had promised to investigate the Shs9.6Bn of drugs procured by NMS, I can’t send him to them again, I will put this matter aside and meet as a committee,” he said.
