Budget can cover medical project with UN agency: Finance Minister
The minister’s comment come a day after the Anti-Corruption Commission (ACC) said that the funds were not allocated in the annual budget, as required by the regulations drafted under the Public Finance Act, for the project with the United Nations Office for Project Services (UNOPS). The commission also said that the attorney general had also advised the health ministry to confirm whether the project was included in the annual budget. Jihad, however, said the health ministry would be able to allocate the MVR67 million required for the project from its budget. “The ministry would be able to accommodate the cost to its budget, which was approved by the parliament. There is no obstacle to that,” he said. ACC also said that the health ministry did not consider the issues raised by the finance ministry and the legal advice given by the attorney general before signing the agreement. The finance minister said that his ministry did not provide any written recommendation to the health ministry, but asked to follow the finance act. “We only told them to follow the Public Finance Act and to consult the attorney general. It’s the health ministry’s responsibility to carry out the project in accordance with the act,” he said. Health ministry also acknowledged the need to look into some issues noted by the ACC, and said it would follow the commission’s instructions after an investigation. “We signed the agreement, which was approved by the finance ministry, after consulting the attorney general. So we have to clarify some issues,” Director General Dr Sheeza Ali said. ACC also believes that making advance payments to UNOPS’s bank account at New York’s JPMorgan Chase bank is also an issue, as the government cannot, under local regulations, spend more than the quoted prices. According to the commission, the agreement also violates a clause of the finance act which says that the government can only pay 15 percent of the cost in advance. The commission also noted that the ministry did not open the project for bidding – a requirement under the finance act – before awarding it to the UN agency. Under a two-year contract signed on April 15, UNOPS will provide pharmaceuticals and other medical equipment for state-run hospitals and health centres through its extensive network of suppliers. The project is to be completed in four phases, and the government can make payments in two instalments a year. The government earlier obtained pharmaceuticals through individual suppliers.
Fetched On
Last Updated
Last Updated