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The Commission of Inquiry appointed to investigate allegations of corrupt practices at the Karl Heusner Memorial Hospital began its public hearings this morning at the Belize Institute of Management’s conference room. The first witness was Deputy Auditor General Wayne Simon. He submitted an audit report conducted for the period January 2007 to June of 2009. The audit focused on the purchasing of pharmaceuticals. It was a long first day of hearings as Simon tediously read through the 111 page report. But there was some news and this morning it focused on CEO in the Ministry of Health Dr. Peter Allen and the choices he made. According to the audit report on numerous occasions CEO Allen disregarded the recommendations of the KHMH’s Tendering Committee and chose his own supplier. According to Simon, those choices actually saved the hospital money.

Wayne Simon, Deputy Auditor General
“The changes made by the CEO Ministry of Health in most cases apparently resulted from a selection of cheaper alternative brands. The tender committees’ recommendation for the most part were not taken by the CEO Ministry of Health. Instead suppliers with cheaper generic brand were contracted.

Similar to 2008 to 2009, it was evident that in most cases changes made by the CEO Ministry of Health was apparently based on selection of cheaper alternative brands. However in four instances the contracted unit price exceeded the tender committee’s recommended unit price although the brand of both were the same.

It appeared that the guided principle of assured quality that the committee claimed it adhered to was inconsistent with the CEO Ministry of Health’s approach for selecting alternative brands of lower cost pharmaceuticals and medical supplies. It is useless to have a tenders committee with the technical experts if its recommendations will not be implemented.”

But while Allen may have saved the KHMH money in most instances, the audit report found that he chose generic brands of pharmaceuticals which in some cases were substandard or just plainly did not work.

Wayne Simon,
“Issues of product quality in respect of items contracted by the Ministry of Health were brought to light or substantiated by formal complaints lodged by health officials in respect of IV given sets. The tenders committee recommended the use of Baxter brand. However the CEO Ministry of Health contracted suppliers that provided the generic UK from Holland Brand in 2008-2009 and 2009-2010 respectively.

Complaints have been received from the health facilities that the micro-IV given sets supplied by MC Pharmaceuticals in accordance with the Ministry’s contract no. 10 for 2008-2009 were not of accessible quality. For the shutoff valve of IV sets, they were not working and there was no additional port to administer the IV medications. Representative from MC Pharmaceutical Dr. Ricardo Fabro, in a letter dated the 20th of 2008 acknowledged that there was a problem with the company’s product supplied to the Ministry of Health. Also, the CEO Ministry of Health via a memo dated 10th February 2009 wrote Mr. Fabro acknowledging MC Pharmaceuticals as his company informing of the poor quality product.

Whilst there was no law or regulation that prohibited the award of contracts to employees of the various health facilities, it is suggested that such practices be minimized where possible to avoid conflict of interests.”