Health Ministry advised to proceed with project in accordance with the law

The Anti-Corruption Commission (ACC) has advised the Ministry of Health to conform with the Public Finance Act, in carrying out the project to establish a ‘Central Health Procurement Unit’ in collaboration with the United Nations Office for Project Services (UNOPS).

ACC said that the MoU signed between UNOPS and the ministry on 31 October 2012 regarding the three-phase project, only details the work related to phase one.

After investigating a case filed in relation to phase 2 and 3 of the project, the commission noted that permission had been requested from the Finance Ministry and Attorney General’s Office for the draft of the management service agreement prepared for the project.

Finance Ministry had highlighted that the Public Finance Act and the regulations created under this act must be followed, and that expenses by the Maldivian government related to this project must, as stated in the Public Finance Act and related regulations, be included in the ministry’s budget. ACC noted that the Attorney General had advised to ensure that this has been confirmed.

ACC also said that the advice given by the Finance Ministry and Attorney General’s Office had not been considered when the agreement was signed.

ACC said that funds for the project should be transferred to the project after obtaining parliament approval, but this project was not included in the budget passed by the parliament for 2013.

ACC referred to the section in the agreement which states that the work related to the appointment of a consulting company and purchase of assets would be shared between UNOPS and the ministry, and this would be done through a bidding process; and said that the Public Finance Regulation stipulates the procedure to be followed in procurement transactions by State institutions, and that procurement should not be carried out in violation of this regulation.

ACC notified the Health Ministry to correct the activities being undertaken in relation to this project in violation of the advice provided by the Finance Ministry and the Attorney General’s Office.

The purpose of this project by the Ministry of Health is to centralise the supply and procurement of medical supplies and services within two years.