Health fund fails to account for 30bn/-
The House Public Accounts Committee (PAC) has meanwhile denied Lindi regional leaders an audience and sent them packing after their failure to explain loss of over 200m/- in public funds.
POAC Deputy Chairman Deo Filikunjombe explained that his committee reviewed a report by the Controller and Auditor General and discovered that it was failure by NHIF to observe the law that was behind the massive loss.
He said the fund had bought or otherwise procured a number of items without caring to follow laid down guidelines.
Giving examples, the MP said the fund engaged the services of security personnel and bought oil without announcing any tender, thus occasioning loss running into billions of shillings.
“Our committee was shocked on discovering that public procurement has been done without following the country’s laws and regulations, which are very clear,” he noted, adding that was taxpayers’ money and not money from NHIF coffers.
“This is a matter of grave concern over which our committee cannot remain silent.
Today we have observed this; what about tomorrow?” remarked a visibly upset Filikunjombe.
“The explanation the NHIF Director has given us contradicts the CAG’s report, which suggests that the fund is not doing its job as expected. We want the money back and safe for the benefit of public, and not otherwise,” he added.
He said the committee had reviewed the CAG’s report and thereafter instructed NHIF to work on the problem discovered to ensure that they did not recur, adding: “We directed that, for purposes of transparency and ensuring that there was no conflict of interests, the fund’s director general should not be a member of the team of auditors because is the one who had done the audit under dispute in the first place.”
The committee further directed NHIF to do whatever it would take to minimise running costs, “and bring to us the fund’s annual procurement report at our next meeting for more clarification”.
A member of the committee, Kangi Lugola, said violations of the legislation on public procurement were an indication that corruption and favouritism were rampant or endemic.
He said it was unacceptable for the fund to be fond of seeking loopholes through which to enter into “emergency procurement transactions when the law clearly prohibits such things”.
NHIF Director General Emmanuel Humba defended himself, submitting that they were faced with a shortage of personnel “and one of our procurement professional quit and getting a replacement took very long” and adding that oil adulteration had contributed to the loss discovered.
In follow-up remarks, NHIF Board Chairman Ally Kiwenge commended the committee “for their constructive comments” and promised to work on the problems cited without delay.
“It would be unfair to expect the committee to say we are doing a good job when there are many problem areas. This should serve as part of a learning process,” he said.
Meanwhile, PAC Chairman John Cheyo led his team in sending away Lindi regional leaders who had come to Dar es Salaam for a meeting with the committee on their 2010/2011 revenue and expenditure.
After the discovery of the 200m/- loss, he declared: “Sorry, colleagues, there is no need for the committee to waste time listening to these people. Let’s go straight on to our agenda.”
Cheyo then started going through the Lindi report while shaking his head in apparent shock and disbelief, and later stopped going through it and ordered them “get out and head back to home”.
He said the report showed that hefty amounts of money had been spent without detailed explanation or valid supporting documents, noting: “We are not here to waste time discussing such a hopeless report.”
Responding to earlier queries by the committee, acting Lindi regional administrative secretary Thomas Soum blamed the mess on a former “officer in charge of funds” he said things had since been transferred to Manyara Region.
Cheyo later promised to write a letter to the relevant authorities “strongly recommending” the immediate demotion of the officer referred to – and a second letter, to the Minister of State in the Prime Minister’s Office (Regional Administration and Local Government) – “so that the officer’s salary is subjected to a 15 per cent deduction”.
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