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Auditor General Called In At KHMH
posted (July 15, 2014)
Last night, we told you about the reports reaching or news room that Karl Heusner Memorial Hospital, the national referral medical institution was in a short-term cash flow crisis following massive pay-outs to the tune of hundreds of thousands of dollars which were made last month.

Our information was that there were 2 X-ray machines which were acquired from an Orange Walk based business which was paid without invoice or contract.

Well to set the record straight, Chair of the KHMH Board, Chandra Nisbet-Cansino granted an interview to the media in Belmopan this afternoon. She discussed to topic with us, explaining that the amount of money paid out is of concern that the board, so the Auditor General's Office is being called in to ensure that the hospital is getting value for money:

Mike Rudon, Ch 5
"We understand that there is a matter of two x-ray machines that were bought for hundreds of thousands of dollars and there is also an investigation at this time - the manner of the purchasing."

Chandra Nisbet-Cansino, Chairman, KHMH Board
"That matter was brought to the Board, I think it was a meeting of last week Thursday 10th July, and it was of great concern to us, and so we have asked the Auditor-General to kindly review the relationship between a particular supplier and the Karl Heusner."

Daniel Ortiz
"Has that contributed to the issues of finances at this time at KHMH?"

Chandra Nisbet-Cansino
"It's possible but we don't know. We would have to wait on the conclusion of that investigation."

Daniel Ortiz
"We were also told that there were some 37 beds that were bought for the hospital, but the manner in which it was purchased suggests some irregularities and that is also part of the investigation. Can you confirm that for us?"

Chandra Nisbet-Cansino
"I can confirm that yes that was brought to my attention. I immediately checked with the CEO and he assured me that the requisition was voided and no purchase order was issued for that purchase."

Mike Rudon, Ch 5
"Generally the body which calls in the Auditor General gives a scope for the investigation. Could you tell us the scope of this investigation, if it will be looking at only the x-ray machines for example or will it be looking at a certain time period?"

Chandra Nisbet-Cansino
"Well the initial letter sent through the Financial Secretary is asking for a targeted audit with a particular supplier that has been selling medical supplies to the Karl Heusner for the past year. So that is basically what we are asking initially."

"Basically there are two x-ray machines that were purchased and there are questions that arise regarding the specific invoice of purchase. There is a small x-ray machine that is a hundred thousand dollars plus, and there is a second one that's approximately four hundred thousand…it's a portable machine that we need in the operating theatre and emergency room….so the total is about six hundred thousand dollars. At this time we have paid some monies to the supplier but luckily we have not paid the full amount and hence the reason we want to investigate now to make sure that we are receiving value for money."

Daniel Ortiz
"Is the KHMH experiencing a short term financial difficulties because we are told that at this current moment the hospital is having difficulty to meets its payroll?"

Chandra Nisbet-Cansino
"It was I think a couple months ago that it was brought to our attention that the subvention that we were receiving might not cover the expenses that we had and that was immediately addressed with the Ministry of Finance with support from the Ministry of Health. An increase in our subvention was given I think retro-active to April and it should run for the rest of this year, so yes there was a concern. I personally wouldn't called it a crisis, but there was a concern, it was addressed and we have got additional funding until the end of the nest financial year."

Mike Rudon, Ch 5
"I know that that is a long term thing - the financial crunch, but is any part of that financial crisis related to the leaving to the former director of finance?"

Chandra Nisbet-Cansino
"I cannot say that at this time. Like I said there are concerns of expenditures. That matter is under investigation at this time and perhaps after the investigation is finished I will be able to give you more information."

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