THE Auditor General (AG), Deodat Sharma, was on Monday ordered by the Public Accounts Committee (PAC) to launch a “Value for Money Audit” into the drug procurement practices and shortages across the country.

A Value for Money Audit is an independent, evidence-based investigation, which examines and reports on whether economy, effectiveness and efficiency has been achieved in the use of public funds.

The order to conduct the audit was issued by Acting PAC Chairman, Bishop Juan Edghill, during a sitting, where presentations were made by Regional Executive Officers (REOs) of Regions One (Barima-Waini), Two (Pomeroon-Supenaam) and Seven (Cuyuni-Mazaruni).

Edghill recommended that the audit be conducted in light of the numerous discrepancies uncovered in the report submitted by Region One’s REO, Mr Leslie Wilburg, about $3.395M being spent to procure drugs and medical supplies in 2015.

Initially, the Region had budgeted for over $43M for the purchase of medical supplies, but a warrant was subsequently issued by the Region in November 2015 to the Ministry of Public Health for $40M to purchase drugs and medical supplies on its behalf.

The Ministry, having been unable to execute the purchase as requested, failed to send financial returns to the Region for the unexpended sum.
According to Wilburg, the Region is yet to receive a financial return, a claim that was immediately refuted by PAC member, Ms Pauline Sukhai, who pointed out that the Region did in fact receive the financial return in 2016.

His memory having been conveniently jogged by Sukhai’s timely reminder, REO Wilburg subsequently confirmed that the Region had indeed received the financial return, but had blundered by not stating when the $40M was returned to the Consolidated Fund.

Meanwhile, when questioned about the remaining sum from the 2015 allocation, Wilburg said that $3M of the remaining $3.395M was spent to purchase emergency drugs.

Questioned further by committee member, Nigel Dharamlall, about how the remaining sum was spent, Wilburg said:
“I purchased based on recommendations received,” despite being urged by Edghill to reconcile his accounts first and then make a presentation to PAC on Friday.

The presentation is expected to include a report on the financial return as well.

In order to avoid instances like these in Region One and other Regions, Edghill reiterated that the value-for-money audit should be done.

Doing so, he said, will ensure that regions are getting value for their money, and that all monies are properly accounted for when it comes to the procurement of drugs and medical supplies.

The audit will also help to point out the shortages of those supplies.