GAC Audit Reports Uncover Missing Millions At JFK Memorial Hospital

Monrovia – The General Auditing Commission (GAC) has uncovered a serious corruption dragnet, which was allegedly masterminded by previous administrators of the John F. Kennedy Hospital (JFK).

Report by Henry Karmo [email protected] 

According to the audit report, which covered the period between 2012 and 2013, the alleged dubious act was done with the acquiesce of some board members.  

As part of mandate of the Legislature’s Public Accounts Committee (PAC), assisted by the Secretariat, a public hearing was Wednesday, March 28, called to give people accused in the report the opportunity to respond to some of the issues and accusations raised in the report. 

But many of the key players including Dr. Wvannie-Mae Scott McDonald, former General Administrator, and her principal deputy, Ms. Munah Tarpeh, Deputy Administrator, were never around to respond to the report. 

The audit report accuses the former administration of failing to provide justification for actions which include; Procurement, Transaction, Expenditure, Internally Generated Revenue, Discrepancy in financial reporting and Payment without Adequate Supporting Documents amongst other. 

The GAC report for period July 1, 2012 to June 30, 2013 discovered several discrepancies in financial reporting. During the audit, according to the GAC, the variances of US$771,327.92 and L$48,598,333.36 were observed between the total expenditure as per the bank statements of the JFK and the total expenditure as per the financial report prepared by JFK. 

Regulation A.3 of the PFM Act of 2009 states, “Any public officer concerned with the conduct of financial matters of the Government of Liberia, or the receipt, custody and disbursement of public and trust moneys, or for the custody, care and use of government stores and inventories shall keep books of accounts and proper records of all transactions and shall produce the books of accounts and records of the transactions for inspection when called upon to do so by the Auditor-General, the Comptroller General, the relevant internal auditor or any officers authorized by them, by the Minister.” 

The GAC’s audit report also disclosed that payments were made without adequate supporting documents. 

During the audit, it was observed that JFK management made several payments amounting to US$1,421,550.07 and L$63,944,241.51 for professional fees, drugs and medical supplies, travels and various goods, works and services without adequate supporting documents. 

PFM Regulations P.9 (2) of the PFM Act of 2009 requires, “Payments except for statutory transfers and debt service shall be supported by invoices, bills and other documents in addition to the payment vouchers”. 

The Auditor General recommended in the GAC report that the Management of JFK provides the supporting documentation for several transactions for the period under review. 

In the GAC position, it stated that documentation provided by the JFK management could only support US$164,986.92 and L$10,066,254.83 respectively; thereby leaving the amounts of US$1,256,563.15 and L$53,877,986.68 expended without adequate documentation to be accounted for by management. 

The report also accused the JFK management of being in breach of financial discipline in line with Regulation A.20 of the PFM Act of 2009. 

During the audit, it was also observed that the JFK ended its operations with a deficit of US$71,477.00 as per its financial report whereas the total bank statements balances at June 30, 2013 amounted to US$1,165,582.96 and L$405,629,596.19.

Additionally, the end of year bank reconciliation statement did not explain the differences observed. 

It was also observed during the audit that the JFK management made several transfers from one account of the entity to another without adequate supporting documentation to back said transfers which violates the Regulation A.3 (1) of the PFM Act of 2009. 

It was observed during the audit that the JFK Medical Hospital Management did not prepare bank reconciliation statements for its 19 bank accounts reported to the GAC for eight months (July 2012–December 2012 and April 2013 – May 2013). 

In violation of the Public Procurement law, it was observed during the audit that, the JFKMC Management carried out procurement splitting for the purchase of petroleum products, local food and various goods and services amounting to US$608,718.30 and L$3,906,967.38 respectively. 

During the audit, it was observed that there were no ledger details or breakdowns to support the figures reported as internally generated revenue of the JFKMC.