Health Ministry pulls plug on suppliers

The disclaimer, which appeared in the three daily newspapers, stated that it did not apply to goods and services provided under contractual agreements or other obligations, such as utility charges.

Newsday learnt that the advertisement came in response to suppliers who were calling the ministry to demand payment for goods and services for which invoices could not be found.

A source disclosed that heads of departments in the ministry were "calling suppliers placing orders on the phone." When the accounts department is subsequently contacted for payment, its personnel have no knowledge of the transaction because an invoice was not issued to substantiate the claim.

The variation of invoices has also been causing the ministry problems. In one instance, an order was placed for tents for a function costing $3,000, but an official verbally changed the order. This was only known after the tent supplier sent a bill for $3,800.

The disclaimer has advised suppliers that the ministry "disclaims all liability for payment of goods supplied, or services rendered to the ministry without the relevant invoice order."

Permanent Secretary Reynold Cooper, whose name appeared on the disclaimer advertisement, said the practice of giving verbal orders to suppliers has resulted in the ministry getting a "bad name."

He said regulations have been instituted for procuring goods and services.

Spending limits have been placed on heads of departments, and any changes must be approved by the Permanent Secretary.

Cooper said there were instances when suppliers could not provide the name of the person who received the goods.

"There were cases where we cannot even make out the signature of who signed for receiving, or to whom the goods went."

The advertisement urged suppliers to exercise due care and attention "when persons attempt to secure goods and services on behalf of the ministry without the support of a duly authorised Invoice Order."

Cooper said the system is designed to ensure prompt payment to suppliers. He said preference will be given to Invoice Orders received by the ministry.

The other orders must be verified before payment. The ministry relies on the Ministry of Finance’s Treasury Department for a grant of credit to cover the money to pay its suppliers.