THE Auditor General’s report on the Accounts of Parastatal Bodies and other Statutory Institutions for the financial year ended December 31, 2019 has revealed that the University Teaching Hospital adult hospital owes K29,640,628 in outstanding bills to suppliers of various goods and services.
The report also revealed that items costing K1,107,844 procured at the hospital were not accounted for.
“As at 31st December 2020, the Adult Hospital had outstanding bills due to suppliers of various goods and services in amounts totalling K29,640,628 which had accumulated from as far back as 2015. Public Stores Regulations No.16 states, ‘every store’s officer or any other officer having in his charge any public stores or other articles of public property must keep and maintain a record of receipt and issue of such public stores.’ Contrary to the regulation, stores items costing K1,107,844 (drugs and medical supplies – K596,687 and general stores – K511,157) procured at two hospitals during the period under review were not accounted for in that, there were no receipt and disposal details,” the report read.
The report stated that 14 payment vouchers amounting to K428,494 were not availed for audit.
“Treasury and Financial Management Circular No.5 of 2018 abolished issuance of accountable imprest and instructed that if a Ministry, Province, or a government agency is faced with a disaster, such an institution may apply to the Secretary to the Treasury for consideration to issue accountable imprest. Contrary to the circular, the hospitals issued 244 accountable imprest in amounts totalling K11,273,482 to several officers to undertake activities such as review of financial reports and printing of scheme cards without authority from the Secretary to the Treasury,” the report stated.
“Financial Regulation No. 65 (1) states, ‘payment vouchers with supporting documents and any other form which support a charge entered in the accounts shall be filed, secured against loss and be readily available for audit.’ Contrary to the regulation, 14 payment vouchers in amounts totalling K428,494 were not availed for audit.”
The report stated that the hospital made 49 inadequately supported payments amounting to K932, 558.
“Financial Regulation No. 45 (2) and 52 (1) require that all payments by cheque or cash for goods, services and works should be supported by cash sale receipts and that vouchers relating to purchases be supported by an official order and supplier’s invoices. Contrary to the regulations, 49 payments in amounts totalling K935,558 processed at two hospitals were not supported with documents such as purchase orders, receipts and goods delivery and received notes,” the report stated.
“Chapter 4, Part 60 (a) and (b) of the Terms and Conditions of Service for the Public Service states, ‘an officer who is absent from duty without leave for a continuous period of 10 working days shall be liable for dismissal and that an officer shall not be paid a salary for the period he or she is absent from duty without leave unless he or she produces satisfactory evidence justifying such absence.’ Contrary to the provision, two officers who had been away from duty for periods ranging from three to eight months without official leave had not been separated from service and were irregularly paid salaries in amounts totalling K298,124.”
The report disclosed that the Adult Hospital at UTH was owed amounts totalling K1,336,231 in rental income by 40 tenants as at December 31, 2020.
“During the period under review, the Adult Hospital leased out office and land spaces to several tenants. However, as at 31st December 2019, the Hospital was owed rental income in amounts totalling K1,174,890 by 40 tenants some of which had been outstanding from as far back as 2017. As at 31st December 2020, the outstanding rentals had increased to K1,336,231 in respect of the 40 tenants,” the report read.
Meanwhile, the report revealed that Indeni Petroleum Refinery Limited lost K9, 415,608 in processing fees of fuel stock received from Tazama.
“A review of the monthly refinery material processing reports pertaining to crude oil from Tazama Pipelines to Indeni refinery for the period under review revealed that there were discrepancies between the quantities dispatched by Tazama Pipelines and those received by Indeni. In particular, records from Indeni showed that 1,855,930mt of stock was received while records from Tazama Pipelines showed that stock totalling 1,869,229mt was dispatched resulting in a discrepancy of 14,299mt. Consequently, Indeni lost K9,415,608 in processing fees,” the report read.
“The refinery operation cost per metric tonne is defined as the proportion of the total refinery operating cost divided by throughput per annum. The 2017 to 2021 strategic plan describes typical efficient refineries as having refinery operation costs per metric tonne that fall in the range from US$25/MT to US$35/MT. An analysis of the company’s refinery operating costs per metric tonne for the period under review revealed that although the refinery operating cost per metric tonne reduced from US$45MT to US$43MT by 4.4%, the refinery operation cost per metric tonne were above the recommended US$25/MT to US$ 35/MT resulting in lower profitability.”
The report stated that in 2018, Indeni made a prepayment of $5,169.11 to a company for the supply of oil scraper rings which had not yet been delivered as at December 31, 2020.
“A scrutiny of foreign suppliers’ ledgers revealed that in 2018, Indeni made a prepayment of US$5,169.11 to Bulkardt Compression for the supply of oil scraper rings. However, the goods had not been delivered as at 31st December 2020,” read the report.