Korle Bu gives blow-by-blow account of UniBank contract termination
The Public Relations Unit of Korle Bu the Teaching Hospital has given a detailed account with regards to the brouhaha surrounding the facility’s decision to terminate a revenue collection contract with UniBank Ghana Limited.
Though the hospital communicated its decision to the bank, it was rescinded following misinformation and “distortions” that were thrown into the public domain.
“So Korle Bu is currently in a stalemate where it continues to lose all the benefits of the End-to-End Hospital Revenue Collection Software,” Mustapha Salifu, Head of Public Relations Unit, lamented in a statement.
The statement also exonerated the current Chief Executive of the hospital, Dr Felix Anyah in the ongoing impasse. “It is important to stress that the management decision to engage Stanbic Bank as the sole institution for the onsite banking services in 2016 predated the appointment of the current Acting Chief Executive who started work in June 2017.”
The PR Unit’s statement comes on the back of corruption allegations levelled against two deputy Chiefs of Staff. Mr Francis Asenso Boakye and Samuel Abu Jinapor were accused of acting fraudulently and twisting the arms of management of the hospital to rescind its decision on UniBank by a musician, Kwame Asare Obeng, alias A-Plus.
Mr. Jinapor told Joy FM he only tried to deal with a complaint levelled against the hospital by UniBank to the effect that the management of Korle Bu had abrogated an existing memorandum of understanding with them without a reason and that the hospital had not treated them fairly.
Though the Police CID exonerated the two of any wrongdoing following its investigations, a leaked tape involving the Deputy Director of CID and A-Plus in a recorded phone conversation has reignited the matter. In a bid to set the record straight, the PR Unit released the statement on Friday giving background and update on the current state of UniBank’s contract with the hospital.
Below is full statement
CLARIFICATION OF DISTORTIONS IN RESPECT OF THE CONTRACT FOR ONSITE BANKING SERVICES IN KORLE BU
On behalf of the Hospital, I wish to clarify distortions carried in sections of the media in respect of the onsite banking services in the Korle Bu Teaching Hospital. The Hospital’s decision to outsource its revenue collection followed a directive by Government in 2008 that all public institutions should cede the collection of their revenue to selected banks in the country.
With the support of the Ministry of Finance and the Controller and Accountant General’s Department, the then Merchant Bank was selected for this exercise for the first time in 2008. Following a review of their operations, Merchant Bank’s performance was found to be below par.
This led to the abrogation of the contract with them and the selection of the HFC Bank, through a competitive process, to take over the onsite banking services in Korle Bu.
Again in 2015, a review of HFC Bank’s operation was conducted and it was established that its performance was not meeting the requirements of the Hospital.
This was communicated to them and the process for searching for another bank that will provide a solution to the chronic revenue leakages bedeviling the Hospital.
A total of six banks were shortlisted to undergo a competitive selection process which was scored in 2015. Stanbic Bank emerged first and UniBank was 4th.
A decision was taken to select Stanbic Bank that was first and UniBank that was 4th to partition the collection of revenue in the hospital.
When the Hospital submitted the names of the two banks to the Controller and Accountant General’s Department for approval, it raised issues about weaknesses in UniBank’s operations in two other hospitals in the metropolis.
These issues were: Reconciliations challenges, delays non-provision of real time access to relevant stakeholders.
In spite of the advice of the Controller and Accountant General’s Department, an MoU was signed, appointing UniBank to simultaneously collect revenue in the Hospital with Stanbic Bank with the proviso that any party can terminate the MoU giving 90-DAYS NOTICE OF TERMINATION.
As the two banks started the onsite banking services the leakages persisted, Management decided to search for an End-to-End Hospital Revenue Collection Software to integrate and network its operations. Stanbic Bank and UniBank were both requested to submit proposals for an End-to-End Hospital Revenue Collection Software in 2015.
The two banks were invited to make presentations on the End-to-End Hospital Revenue Collection Software on two different sessions in 2015. Stanbic Bank successfully presented an efficient software while UniBank failed to turn up during the two presentation sessions.
Management thus awarded a contract to Stanbic Bank to pilot the new software in the entire hospital which is valued at USD240,000.
The software if implemented will simultaneously reduce revenue leakages and increase our revenue base while improving the hospital’s operations in several other areas, both operational and clinical care.
The Stanbic Bank approved End-to-End Hospital Revenue Collection Software was obviously not compatible with the UniBank’s software.
Management, therefore, decided to discontinue the MoU with UniBank in order to enable Stanbic Bank deploy the new software throughout the entire Hospital – covering areas where Stanbic and UniBank were collecting revenue.
In view of the Memorandum of Understanding (MoU) signed between Korle Bu and the banks for the onsite banking services, in which either party can terminate the contract by giving a 90-day notice, a Management decision, a notice of termination was given to UniBank on 12th July 2017. Events thereafter have made Management to rescind the decision to terminate the contract with UniBank.
So Korle Bu is currently in a stalemate where it continues to lose all the benefits of the End-to-End Hospital Revenue Collection Software.
It is important to stress that the management decision to engage Stanbic Bank as the sole institution for the onsite banking services in 2016 predated the appointment of the current Acting Chief Executive who started work in June 2017.
HEAD OF PUBLIC RELATIONS
FRIDAY, SEPTEMBER 29, 2017