Nairobi Hospital makes sh.2 billion loss, the Audit report reveals.
A report by an audit firm report has revealed how Nairobi Hospital has made a loss worth Ksh2.2 billion in2019/2020.
Failure to follow the basic financial rules by the former management of the Nairobi Hospital leading to the mismanagement of funds has put the Hospital on the spot for making losses.
The chairperson Irungu Ndirangu, commissioned the audit to investigate the handling of the hospital’s finances. The report reveals that there are unexplained revenue irregularities between two internal billing systems, Kranium and Navision, in billing and receipts.
“As of December 31, 2019, the total inpatient and outpatient revenue recorded on Kranium for the Financial Year 2019-20 amounted to Ksh12.8 billion. The total revenue recorded on Navision amounted to Ksh10.6 billion resulting in an unexplained variance of Ksh2.2 billion. This is equivalent to two months’ revenue,” the report reads.
From the report, there is a variation gap accounting to ksh.2.8 billion, furthermore, it showed that orders were not the main point of discussion during their meetings except for one discussion carried out on the fourth finance and investment committee meeting held in 2019.
There was also a lack of project records, policies and procedures and payments to projects without contracts, which amounted to Sh1.4 billion.
According to the report, there were three different project lists from three different sources and they were awarded to one supplier.
Further, there were unfair procurement practices of C-arm machine that carries out an endoscopy.
“During the review of suppliers pre-qualification, we noted that some of the service providers did not submit mandatory documents such as completed trade reference forms, latest audited accounts, tax compliance certificates, completed supplier code of ethics and signed an affidavit on bidder litigation history for the last three years,” says the report.
The document called for disciplinary action to be carried out on the staff that interfered with the procurement processes as the report cited several messages between the hospital staff and suppliers.
In December 2019, the hospital was owed Ksh2.8 billion. It says out of 25 debtors contacted, only one responded and disputed the debt as per the hospital books.
