The health sector is experiencing an upsurge in the spending of money ahead of “June Final” when the current fiscal year ends.
An unprecedented amount of money is being spent hastily at public hospitals across the country to purchase medical instruments, furniture and medicines supposedly due to the need of developing the sector.
The practice of rashly spending the remaining amount of allocation has become customary with institutions fearing that they will lose whatever funds they have not spent by the end of the fiscal year.
“A vicious circle has been formed to steal money targeting June Final, when organisations opt to purchase aggressively,” president of Health Rights Movement National Committee Dr Rashid-e-Mahbub told the Dhaka Tribune.
In the 2012-13 fiscal year, around Tk36.23bn was allocated for the implementation of 32 operation plans (OPs) and 23 investment projects. The sector spent 42.32% of the year’s budget, amounting to Tk15.33bn during the first nine months of the fiscal period.
Now in the fourth quarter of the fiscal year, the spending spree is an attempt to deplete the remaining 58% of the total allocation.
The rush of orders leaves room for corruption, which some officials exploit, sources at the health ministry and health department said.
Allegations were made that some identified contractors linked with the crooked officers have been awarded contracts to supply items at above market prices.
Many powerful individuals, from ministers to doctors, are alleged to have exerted their influence on the members of the public purchase committee, tasked with the buying and selling process of the health sector, to give contracts to their candidates.
The members have even been threatened if their nominees were not chosen.
A few officials working at the health ministry and health department acknowledged the June Final spending binge.
A number of organisations in the sector scramble to spend the full budget ahead of June as bureaucratic red-tape usually delays the release of available funds, they said.
The total amount of allocated money is released in four instalments, at the start of each quarter.
Spending 43% of the money committed may seem inadequate, but in terms of the money released in first three quarters, which is Tk2.84bn, this should be seen as significant progress, the officials claimed.
Insiders alleged that many organisations under the health ministry continue to purchase items that cost two to three times the price of the equivalent store-bought products.
The rules that detail various criteria to ensure quality of the purchased products are cleverly skirted. The labels of cheap Indian and Chinese products are being replaced with those of expensive European and American ones.
Directorate General of Health Services Dr Khandaker Md Shafayet Ullah told the Dhaka Tribune that things happen this way every year during June Final. After every three months of a financial year, the calculation of instalments begins and in total, it takes four months to pay.
He said due to the procedural complexities of finance department and draconian terms and conditions for procurements provided by organisations, implementation of many of health services are delayed.
When asked about the bump in spending every May-June, Health Secretary M M Niazuddin on Sunday told the Dhaka Tribune: “The condition is not like that.”
He added that the financial year starts from July 1 and many operation plan and projects, after cutting expenses, start from September. A big share of budget is fixed for purchasing equipment.
It takes a long time to purchase by obeying rules and regulations. During first nine months it appears minor according to total budget but more than 90% of cost expenditure can be met before June 30, the secretary said.
However, Rashid-e-Mahbub said the practice should be stopped if corruption and money embezzlement were to be halted.
The total amount allocated to provide health care services for millions of people “is simply not enough,” he said. “Flushing a large proportion of this meagre amount down the drain on careless spending is very upsetting”.
Implementation of Projects and Activities under RADP for the Fiscal 2012-13 until March 2013.
A total of 24 projects have been included in the Revised Annual Development Programme (RADP) of 2012-13 fiscal year. Of them, 22 were investment projects slated for the health and family planning ministry.
Around Tk8.2bn has been provided in this year’s RADP for the projects, some of which would be financed by Japan Debt Cancellation Fund (JDCF). Of the total budgets, Tk7.55bn will come from GoB and Tk250m as project assistance.
Under the RADP, Tk26.26bn has been set aside for Health Population and Nutrition Sector Development Programme (HPNSDP) of the ministry. GoB would provide Tk8.8bn and Tk19.21bn would come as project assistance. In total, the allocation for the ministry including HPNSDP stands at Tk36.22bn.
Some Tk28.48bn (57.53% of total allocation) has been released as of March 2013. Of them, Tk11.31bn (67.50%) would come from GoB and Tk9.53bn (48.95%) from project assistance.
Nearly Tk15.33bn has been spent as of March 2013, which accounts for 42.32% of the total allocation. Of the money spent, Tk8.49bn has been from GoB fund while Tk6.83bn from project assistance.
