The Prime Minister has completed his review of the quick audit of the KHMH and the news tonight is that it seems the doctors were right, or at least part right in their allegations about corruption in the management of the KHMH. Here’s what the PM concluded after his review of the seven page audit: “the Prime Minister...calls on the KHMH’s Board of Directors to take immediate action to deal with the documented cases of apparently unjustifiably high prices paid without even securing comparative quotations. Absent a satisfactory explanation, the board must act against the person or persons responsible.”
And while no name is mentioned in the PM’s summary, from the context of the document we take it that the key person responsible is Director of Finance Carlos Perrera. The PM’s executive review noted that, “the union’s claim that purchases were made by KHMH at prices far higher than those for similar pharmaceuticals supplied by contractors that had won tenders from the Ministry of Health is substantiated.” He then goes unto add, and again, we quote: “it remains unclear why, in cases where KHMH had to buy from individual retailers, there was no system in place until March 2009 of securing multiple written quotations then selecting the lowest…It is the absence of such a system together with some of the extremely inflated prices paid during that period that has given legitimacy to complaints of corruption.” The key words there are that the PM has concluded that there is_ “legitimacy to the complaints of corruption.” _Again, the burden in those cases falls on Perrera, the Financial Controller.
And what about the Chairman Dr. Ricardo Fabro? Well after reviewing this quick report, the PM concludes that, “there is not the slightest suggestion that KHMH Board Chairman, Dr. Ricardo Fabro, was involved in any wrongdoing.” And while the PM has asked for a complete audit, this is the initial report on the evidences of corruption brought up at the National Assembly by the Leader of the Opposition on Friday June 19th.
The question is what’s next? Well, as we said at the top the PM has demanded that the board “must act against the person or persons responsible.” And again it points most directly to the Director of Finance Carlos Perrera. Speaking with him this evening, he told us he had no comment until the board gives him the go-ahead. The question now is though the Prime Minister has more or less demanded it – the board is autonomous and can – theoretically – act independently. And from what we’ve seen – it would certainly wish to do so for a Director of Finance that it has at all times so staunchly defended.
Of course, if the board does chose not to act against Perrera, that would complicate matters for the Prime Minister’s Office because only the board can remove staff – all the PM’s office can do is remove the Chairman, and the board – and if there’s a standoff – it might force the PM to do just that – which would be seen to be heavy handed.
But that’s days away and there are many issues left to play out before that. Not least of them is the mediation process which commenced in earnest today between the Medical and Dental Union, the KHMH Board and the Labor Department.
