MVR 11m project to install pneumatic tubes in IGMH assigned without tender

The 2017 Audit Report for the Ministry of Health shows that a project to install pneumatic tubes at the state-run Indira Gandhi Memorial Hospital (IGMH) worth MVR 11 million was awarded to a company without having gone through the National Tender Board.

Article 8.25 (a) of the Public Finance Act requires projects worth more than MVR 1.5 million to be awarded by the National Tender Board to the ideal candidate after interested parties have submitted the relevant drawings and plans for review. However, the audit report reveals that the project for installing pneumatic tubes at IGMH was awarded without tender even though the total cost for the project was MVR 11,912,952, and that no announcement had been made seeking interested parties to perform the installation.

The audit report further reveals that the work was assigned without tender or an announcement with authorization from the Ministry of Finance, and that fair opportunities had not being given to interested parties to pledge their proposals.

The Auditor General recommended that procedure be followed as under article 10.3 of the Public Finance Act to resolve this issue, whereby projects worth more than MVR 35,000 need to be announced publicly, and that projects for which procurement costs are more than MVR five million be directed through the National Tender Board as per article 1.4 of the Act.

In addition to this, the Auditor General announced that the case would be forwarded for review to the Public Accounts Committee as required under article 17.04 of the Public Finance Act so that action can be determined with regards to the losses.