The 53rd annual report of the Office of Auditor General, which was made public on Monday, states that the two health institutions received a combined Rs 40 million in 2014/15.According to the report, Banke-based Nepalgunj Medical College and Nobel Medical College & Teaching Hospital of Biratnagar received grants from District Public Health Offices of respective districts even though their permit has not been renewed by the Ministry of Health and Population.
The government distributed a total of Rs 832.6 million as grants to 56 health institutions in 2014/15. However, it neither has record of beneficiaries, nor it follows guidelines and norms for distribution of grants."
"There is neither record of distribution, nor audit reports and monitoring reports. Grant amount has been disbursed without inserting a clause 'Action will be taken against anyone found guilty of breaching laws while utilizing grants amount' in the release lett"r," the report said, addin": "Such distribution without clear policy and standards should be controlled immediate"y."
The report further notes that grants have been distributed, making occasional decision and by breaching guidelines, standards and basis. Four health institutions operated by profit-making multi-purpose cooperatives, received Rs 93.02 million in 2014/15, according to the report"
"The government should have asked organizations receiving conditional grants to furnish progress reports. But it raised grant amount to Rs 832.6 million to 56 health institutions in 2014/15 compared to Rs 530.3 million to 66 health institutions in the previous year without assessing utilization of grant amou"t," the report stated.
Most of the health institutions receiving the grants are community-run hospitals. But monitoring agencies do not have any record of the services extended by these institutions by utilizing the grant amount.
Baburam Gautam, spokesperson of OAG, said grants have been distributed to profit-making health institutions even though there is no clear policy for such distributio". "This is probably the first time that the government distributed grants to private hospita"s," added Gautam.
Most of the health institutions used the grant amount to purchase equipment, while some used the amount to meet their operation cost.
An OAG official, who requested anonymity because he is not authorized to talk to media, said hospitals receiving government grants should have provided free services to peopl". "But we have not received such reports y"t," he said, addin": "Rationale of grants distribution for private hospitals can be established. But it has to be distributed through open competiti"n," the official added.
Dr Suresh Kumar Kanodia, managing director of Nepalgunj Medical College, told Republica that they received the grant from Safe Motherhood Program of the government. Responding to a query on why the permit of his institution was not renewed, he simply said it is in the process of renewal.
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