An audit of government Ministries, Departments and Agencies (MDAs) covering the 2021-2022 financial year by the National Audit Office (NAO) has exposed failure by several institutions to exercise fiscal management of public resources.
One of the key issues highlighted in the report pertains to the financial and operational aspects of Zomba Central Hospital which has been exposed to failure to account for the procurement of a K90 million vehicle and drugs said to be worth K64 million which were not delivered as indicated in the books.
This is according to the management report issued to the controlling officer on November 30, 2022.
One critical observation points to a discrepancy in the procurement of four motor vehicles from a car dealer in Blantyre.
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According to Treasury Instructions (2004), Section 5.19.1, payments for goods and services should only be made after verification and confirmation of delivery or completion of services.
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In this case, the hospital had contracted the car dealer to supply four manual KIA Cerato saloon vehicles at a total cost of K90 million.
But the audit discovered that only three out of the four vehicles were delivered in May 2022, despite the full payment being made on June 18, 2021.
The audit further uncovers other revelations related to the mismanagement of drugs involving an amount of K64,485,237.40.
Treasury Instructions (2004) Section 11.7.1.2 mandates government Ministries, Departments, and Agencies (MDAs) to record all transactions for consumable stores, such as drugs, in a consumable stores’ ledger.
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However, the audit found that drugs issued to dispensaries and Tisungane clinics could not be accounted for due to the absence of corresponding records.
The lack of evidence regarding the receipt, usage, and accounting of these drugs raises concerns about proper management and accountability within the healthcare system.
Principal Secretary for Administration in the Ministry of Health Bestone Chisamile said he is aware of the developments
“The Ministry is in touch with Zomba Central Hospital for explanations. [We are] to get feedback next week,” said Chisamile Friday.
Commenting on the matter, Audit Transparency Initiative Malawi, Nicholas Mwansima said when drugs worth millions cannot be traced in hospitals that are already struggling with shortages of basic drugs, it is a serious matter that calls for immediate intervention by the line ministry.
“Hospitals cannot claim to exist for purposes of serving and saving lives on one hand, and on the other, collapsing. This is a serious breach of trust for Malawians,” said Mwansima.
Meanwhile, economic commentator Velli Nyirongo has said the findings of the NAO underscore the need for robust financial controls and accountability measures within government institutions, particularly those involved in critical sectors such as healthcare.
“Addressing these weaknesses is crucial to ensuring the efficient and responsible use of public funds for the benefit of the Malawian people. As the government assesses the implications of the Auditor General’s report, it is hoped that corrective action will be promptly implemented to enhance transparency and accountability in public spending across the nation,” Nyirongo said.
Nyirongo called for disciplinary action against those involved in mismanagement of public resources.
The Centre for Social Accountability and Transparency executive director, Willy Kambwandira, has described the findings of the audit report as serious procurement flaws and called upon law enforcement agencies to urgently act on the report.
“The audit report raises serious procurement flaws, and it is our expectation that proper administrative sanctions will be taken against officers involved in the procurement and storage of drugs at the facility. We are greatly concerned with the lack of action on the findings and recommendations of these audit reports. This is what is fueling corruption, fraud, and abuse of office,” Kambwandira said.
The report says that in the year ending June 30, 2021, the government lost about K7 billion due to various financial irregularities and mismanagement.
