Government
Health ACEO Implicated in Falsifying Documents & Conflict of Interest
By Lagi Keresoma
APIA, SAMOA – 03 MARCH 2022: The Assistant Chief Executive Officer (ACEO) Finance & Procurement Division of the Ministry of Health is being implicated in falsifying documents and having a conflict of interest in awarding a contract for the interior painting and replacement of damaged screen wires for the staff residence buildings.
On 26 November 2021, the Ministry’s Internal Auditor presented an audited review report to the Director General of Health on the Transworks Ltd contract.
In that report, the Internal Auditor identified areas he found inconsistent relating to the process with which the bid was conducted and the work provided by the contractor was incomplete.
The Report documented that the Finance & Procurement Division requested and obtained quotes from three suppliers on 28 October 2021 for the renovation work.
Following the Health Emergency Operation Center (HEOC) meeting on 10 November 2021, the auditor inspected the renovation work and found the renovation work was of poor quality.
He also discovered that on the 9th November 2021, documents had already been sent to the Ministry of Finance to process payments to Transworks Ltd.
The auditor called MOF and inquired about the payments but was told that the Samoa Audit Office team had already approved the payment on the same date.
The auditor then asked MOF to delay the payment while he verified the claim.
Contract awarded to father-in-law
The auditor questioned the involvement of the ACEO of Finance & Procurement (F&P) in preparing and following up payments to Transworks Ltd from the Ministry of Finance.
In his own investigation, it was revealed that the Transworks Ltd is owned by the ACEO’s father-in-law who was a former Cabinet Minister.
He noted in his report that the ACEO never disclosed her conflict of interest or took actions to avoid it.
The auditor further stated that the ACEO’s position within the division was an advantage in accessing information not accessible to others.
“Being a company that is connected to the ACEO, Transworks Ltd provided quotations that placed them second cheapest out of the quotations sought by the Finance & Procurement division to provide service as per the scope of works determined by the Ministry,” says the report.
Falsifying reports
The ACEO is also alleged to have prepared an inspection report on 9 November 2021 indicating the completion of the work in a satisfactory manner.
The report was signed by the Principal Maintenance Officer and attached to the batch to support payments to the contractor.
However, the Auditor accompanied by the Principal Maintenance Officer, did their own inspection and realized that the contractor had not completed the work.
The Principal Officer later confirmed that the ACEO drafted the inspection report and made him sign it and presented it to MOF to secure the respective payments.
Overpriced & poor assessment of quotes
Three companies bid for the work which included:
* East & West Construction for $62,500.
* Transworks Ltd’s for $48,300 and
* I & F Construction $8,280.
Further Conflicts of Interest
The report noted that the Transworks Ltd and East & West Construction companies have close relations to the ACEO of Finance & Procurement and also the ACEO for Human Resources and Administration.
“The quotation of $48,300 was to provide labour only, as the materials, such as paint and new screen wires were provided by the ministry,” said the report.
The report also noted that the scope of work document relayed to the contractor was not signed by the responsible officer which means the approval process for the contract was also incomplete.
Referred to Public Service Commission to investigate
Due to the inconsistencies discovered by the Internal Auditor, and the seriousness of the matter and the ACEO’s involvement in the payment process, he recommended that matter must be referred to the Public Service Commission for further investigation.
He also recommended identifying and confirming other payments that have been paid to businesses with close relations to the ACEO and other staff, and that all payments be pre-audited by the Internal Auditor to avoid such practices.
All major and minor work for the Ministry to be discussed at the Management level and endorsed by the Director General and for Transworks Ltd to complete the contract before any payment is made.
