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Public money fizzles out

22 mars 2004, 20:00

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Food is prepared in unhygienic, dirty, sometimes rat-ridden hospital kitchens and served cold to in-patients and medical staff, says the director of audit in his report released last week. These sleazy and greasy-kitchens are squandering taxpayers? money to the tune of Rs 21 million yearly in wasted food, says the report.

What is described at the ministry of Health is more akin to what one may expect to see in a banana republic. The director of audit reveals the following mishaps: a recently acquired X-ray machine at Flacq hospital suffered frequent breakdowns and eventually stopped functioning. Problems were attributed to the absence of a voltage stabilizer and a dehumidifier.

An item of MRI equipment was bought for Rs 48.2 million with a maintenance contract of Rs 6.3 million awarded to the supplier. A foreign consultant brought in to train staff on the MRI found that magnet servicing, maintenance and troubleshooting were below standard.

A C-Arm image intensifier for cardiovascular examinations bought in 1999 could not be used because they forgot to order a translucent table, which goes with this equipment.

Rs 57 million were spent on raising the status of Flacq hospital into a regional hospital. Yet, the director of audit found leaks in the operation theatre room, as well as the scrubbing rooms and autoclave room of the main operating theatre. The new labour ward and nursery had leaks in their roofs. To prevent these, tarpaulin was fixed on the roof.

To remedy lack of space, in-patients were accommodated in corridors in two different wards, whereas toilet facilities were inadequate in other wards.

The ministry of Health is not the only one to have been taken to task by the director of audit. Wastage of public funds and inadequate control over implemented projects are to be found at different ministries, though to a lesser extent.

The report points out that in April 1999, the Central Tender Board gave its approval for the award of a contract for the sum of Rs 168,303 for the construction of core housing units by the ministry of Housing and Lands. The actual cost of the project amounted to some Rs 222 million for 994 housing units. The director of audit observes that ?the total costs incurred by the Government up to 30 June 2003 amounted to some Rs 239 million.? In his observations, the director of audit states: ?My office could not ascertain whether value for money has been obtained for the site infrastructure project. Supervision and the level of control over the implementation of the site infrastructure works by the ministry were not adequate. The ministry discharged its responsibility on a private company? All claims submitted by the agent were not properly verified and assessed in terms of accuracy and completeness at ministry?s level before effecting payments.?

At the ministry of Tourism, officers benefiting from duty remission for the purchase of motor vehicles were also using the ministry?s vehicles. The director of audit notes that ?the signatures of the authorising officer were missing in many cases and trips considered as unauthorised. It may also mean that a request for transport was not applied in all cases?. This ministry, for the financial year incurred an expenditure of Rs 751,189 for maintenance and running of vehicles, as compared to the previous year?s figure of Rs 333,545. This included an amount of Rs 164,069 relating to the repairs of a vehicle, which was involved in an accident.

Moreover, this ministry did not deem it fit to resort to proper procurement procedures for expenses above Rs 20,000. ?In some cases, no quotations were sought, while in other cases, quotations were sought from a restricted number of service providers. In so doing, only one supplier would then respond and was accepted by the ministry.?

During the year 2002-03, an amount of Rs 21.6 million was paid in respect of arbitration awards delivered for disputes between contractors and the ministry of Public Infrastructure, Land transport and Shipping on building contracts, says the report. But according to the director of audit, only some points in dispute justified the resort to arbitration, others could have been avoided.

Under the chapter of the Prime minister?s office, the report notes that the cumulative repair costs for the offshore patrol vessel Le Vigilant had reached Rs 43.5 million as at 30 September 2003. ?It has now been established from the technical evaluation report that the vessel has an inherent shafting design defect. The case against the ship designers has been strengthened. In order to safeguard the interest of government, it is suggested that legal action be taken against the supplier without delay,? writes the director of audit.

At the ministry of Agriculture, it has been noted that three livestock stations were unable to meet the increasing demand for young animals for breeding purposes.?There had been a continuous drop in milk production at two stations over the years. Land at the fodder production centres was grossly under-utilised. The Animal Production Division (APD) had not been able to achieve its objectives relating to management of livestock and production of fodder,? says the report.

It also points out that, in 1997, a total area of 22.83 arpents in Pointe-aux-Piments was leased to eight planters for the production of fruits, vegetables and seeds through hydroponics and other technologies. At September 2003, more than five years later, no hydroponics or such latest production technology was implemented and no fruit production carried out.

Moreover, lessees of agricultural lands have erected houses on these lands and others are not paying their rent. ?In certain cases, annual rent of up to 15 years was due by tenants. Amount due by some lessees ranged from Rs 9,000 to Rs 290,250. No appropriate action was taken by the ministry to recover the debt?, says the report.

In a meeting with the press last Saturday, the deputy prime minister and minister of Finance, Pravind Jugnauth, reacted to the damning criticism of the director of audit. He said he was coming soon with a plan to fight wastage and ensure a more efficient way of managing public funds. The Medium Term Expenditure Framework is a new concept where ministries will have to submit three-year plans with clear objectives and expected results.

?Sleazy and greasy kitchens are squandering taxpayers? money to the tune of to the tune of Rs 21 million yearly in prepared and unused food

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