MOHW & MLSS Lauded and Scolded for COVID-19 Spend

The latest COVID-19 expenditure audit conducted over the period May 2020 to June 2022, has found that of 8 billion dollars allocated to aid the country’s COVID-19 emergency response interventions, millions remain unaccounted for due to myriad deficiencies.

Among the findings tabled in the Parliament, on Tuesday was that between the Ministry of Health and the Ministry of Labour and Social Security there were several breakdowns regarding contracts, records keeping and assessing value for money. While lauding both Ministries for their swift response, multi-sectoral involvement and frequent meetings on related actions, the Auditor General’s team uncovered deficiencies in how goods and services were procured for the COVID-19 pandemic. It notes the Health Ministry did not have contracts in place to govern arrangements allowing for accountability in its emergency spending related to the pandemic. 

In providing, for example, an initially required quarantine facility and isolation space for then COVID -positive persons, the Ministry undertook infrastructural work. However, it was found that the Ministry did not have a contract or agreement in place with all service providers, setting out the obligations of the parties. It went further, highlighting payment of 337 million dollars to seven hotels and guest houses for quarantine accommodations, but notes the Ministry only had a formal contract with one of the service providers. 

Six of the service providers without a formal contract were paid a total 293 million. The Auditors note it exposed the Ministry to unbudgeted liability and varying payment arrangements. In one case, one service provider unexpectedly asked the MOHW to pay the facility’s electricity bill and 90 per cent of water charges. The MOHW also paid another of the service providers $3 million for sanitization and cleaning at three of the seven facilities, in addition to the rental payment for the accommodations. This arrangement was reportedly not in keeping with section 53 of the Financial Regulations which requires accounting officers to agree on the terms and conditions for the provision of service prior to implementation.

The audit also found that 124 million dollars were paid to 8 suppliers for infrastructural work between January 2020 and June 2020 with no contract in place. The Ministry also did not report to the national contracts commission why they employed the direct contracting methodology, among other findings.

In conclusion, the Auditor General has recommended that in addition to the two ministries named, all accounting officers consider the deficiencies as a means to improve the management of emergency spending in the future. 

Watch more news: Major Stories | Breaking News | Latest Developments – CVM TV