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Audit report exposes IGMH disbursed funds to SIWEC unlawfully

Shahudha Mohamed
13 January 2021, MVT 20:05
Indira Gandhi Memorial Hospital. The 2018 audit of the hospital revealed several violations of the Public Finance Act. PHOTO: MIHAARU
Shahudha Mohamed
13 January 2021, MVT 20:05

Indira Gandhi Memorial Hospital (IGMH)'s 2018 audit report revealed that the hospital unlawfully disbursed funds of over MVR 13 million to Sifainge Welfare Company (SIWEC), to establish its Respiratory Medicine Department.

Unveiled in 2019, the interior and furnishing work of the Respiratory Medicine Department, as well as procuring the machinery and equipment, was contracted over to SIWEC for MVR 38 million.

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.

The Public Finance Act also states that costly machinery and equipment must only be procured through a well established importer that can provide a warranty for the products, but SIWEC had not conducted any business at the time.

The company 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.

Moreover, the report revealed several other violations of the Act, such as IGMH completing the payment for procured machinery prior to receiving them.

According to the Auditor General's Office, IGMH had failed to provide documentation for receiving MVR 2.2 million worth of equipment, and there was no way to confirm whether all of the procured machinery was delivered.

Furthermore, the report stated 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 they were up to the required standards.

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