Auditors at Korle-Bu, the nation's premier teaching hospital, have uncovered corruption in the hospital's procurement process that may be a cue to massive embezzlement that may have gone undetected for some time, specifically in the Supplies Department (Central Stores) of the hospital.
After months of investigations it has emerged that the director of the department, Mr. Boa-Amponsem, abused the due process of procurement and purchased items that would last 17 years.
A case in point is what is called 'Post Operative Charts' that are used to monitor patients' progress.
The quantity ordered is estimated to last till 2019. Worse still, that type of charts had been officially banned by the authorities of the hospital and worldwide since 1989.
Mr. Boa-Amponsem flouted the order and accommodated those obsolete items for the hospital in 1999 and 2000.
This revelation by the auditors has raised eye-brows and concern about the management of the resources of the hospital, which had gone 'HIPC' for years now.
In an attempt to track down mismanagement and corruption in the premier hospital, the Board of Directors during their 80th general meeting in 2001 charged the internal auditors to investigate allegations of corruption and 'serious breach of procurement procedures' by Central Stores.
The auditors' investigations were to cover a review of the procurement practices and substantiation of the supplies delivered to the hospital between the period 1999 and February 2001.
Apart from the post operative charts it also came to light that Boa-Amponsem purchased 'Report Mounting Sheets' that would last 7.5 years.
The report, which was signed by the chief internal auditor, Mr. R. O. Abbey, and dated March 22, 2002, made interesting reading as a number of revelations are featured in the four-page report.
The report revealed that 'NO PURCHASE REQUISITION' was maintained by the supplies division, which is a formal notification from the storekeepers to the suppliers to initiate processes for the purchase of goods.
The auditors discovered that no maximum and minimum stock levels as well as re-order quantity and re-order stock level had been instituted for each item of stock kept by the Central Stores.
This, therefore, meant that one could not determine the basis upon which the quantum of stocks bought was arrived at.
It all started in 1999 when Boa- Amponsem decided to do his own thing.
He corrupted the procurement process and over-ordered 190,000 of 'obsolete' charts, though the financial cost was not as heavy. The hospital was no longer using that type of charts.
In spite of excessive stock held at the close of 1999, in May 2000 he further ordered for the supply of 50,000 of the same obsolete charts.
The report revealed that in 1999, out of the 190,000 copies ordered, only 19,000 were used, while in 2000 only 6,000 of the charts were used.
An average of 12,500 was registered yearly.
Currently about 215,000 copies of the charts are held in stock.
Additionally, the investigations revealed that the operative charts were re-designed in 1998.
However, the orders placed for the hospital in 1999 and in 2000 were of the old design and most of the charts were being used as jotters.
On the Report Mounting Sheet, the report revealed that a total delivery in 1999 and 2000 came to 5,000,000 sheets whereas an average yearly use is rated at 52,000 sheets and at the close of year 2000, stock held was 395,000 sheets. This represents 7.5 years.
Additionally, Cannula-24G delivered between 1999 and 2001 was 67,300 units.
The expected stock held as at February 2001 was 10,810 units.
This means that the hospital uses an average of 18,830 units and as at February 2001, stock held was less than one year.
However, investigations revealed that instead of 10,810 units that should be in store at the close of February 2001, a physical stock of 4,993 units was sighted during the auditing.
Thus, a stock shortage of 5,817 units costing ?34,902,000 was recorded.
This shortage was detected in the Child Health Sub-BMC store.
Besides, on August 25, 2000, some 5,200 units of Life Care Cannula, costing ?20,020,000, was reported to be defective as it broke up often when used.
The auditors concluded that since the stock procurements are financed from the hospital budgetary allocation which caters essentially for the budget period, the hospital stock holding should not exceed one year's consumption.
Thus Korle-Bu had been holding excess stock that in one instance would last 17.2 years and in the other 7.5 years.
The auditors, therefore, recommended that both Boa-Amponsem and M. I. Mills, assistant storekeeper in charge of the Child Health Sub-BUC store, be held accountable.
