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IGMH "looking into" Finance Act violations exposed in audit

Shahudha Mohamed
14 January 2021, MVT 15:02
IGMH main entrance, in capital Male'. PHOTO/MIHAARU
Shahudha Mohamed
14 January 2021, MVT 15:02

Indira Gandhi Memorial Hospital, on Thursday, responded to the violations of the Public Finance Act exposed in the hospital's 2018 audit report publicised by the Auditor General's Office on Wednesday.

Asserting that the hospital gives special attention to carry out all of its projects in line with the Public Finance Act, IGMH stated that the hospital is currently "looking into" the issues raised in the audit report.

In the cryptid statement, IGMH neither confirmed nor denied the various violations of the law in the project to establish its Respiratory Medicine Department.

According to the Auditor General Office's report, the hospital had unlawfully disbursed funds of over MVR 13 million to Sifainge Welfare Company (SIWEC), to complete the interior and furnishing work of the aforementioned department, as well as procuring the necessary machinery and equipment.

As per the audit report, IGMH had paid SIWEC an excess advance payment of MVR 13.2 million, against the Public Finance Act, which stipulates that the advance payment for any project costing over MVR 250,000 cannot exceed 15 percent of the total project cost.

Moreover, IGMH had procured machinery and equipment through SIWEC although the company had not conducted business at the time, while the Act states that costly machinery and equipment must only be procured through a well established importer that can provide a warranty for the products.

SIWEC had procured the necessary equipment from India's NU Hospital, but the audit report noted that if IGMH had directly ordered the products from the Indian facility, it would have slashed MVR 2.7 million from the procuring cost.

The report further stated that IGMH had completed the payment for procured machinery prior to receiving them, and failed to provide documentation for receiving MVR 2.2 million worth of equipment. There was no way to confirm whether all of the procured machinery was delivered, the report read.

Furthermore, the audit revealed that machinery worth over MVR 4 million had been left unused because SIWEC had not procured all of the products to operate them.

Although the total cost spent on the machinery, equipment and furniture for the Respiratory Medicine Department amounted to MVR 25.3 million, the audit highlighted that the office was not able to confirm whether the acquired equipment and machinery were up to the required standards.

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