Audit of the Central Health Region show gross misuse of public funds

On August twenty-sixth 2013 the Auditor-General of Belize was notified that there were credible reports of misuse of public funds at the Central Health Region. Four days later an audit team commenced an investigation which concluded on October first, 2013. News Five has received a copy of the detailed audit report with recommendations. It is disturbing, to say the least, and points to blatant and unrestrained misuse, and even misappropriation, of public monies. Mike Rudon has the report and part one of what seems to be a clear case of corruption.

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Mike Rudon, Reporting

In early May, Chief Executive Officer in the Ministry of Health Peter Allen sat at the head table for an awards ceremony at the Matron Roberts Polyclinic. At his side was a smiling Melinda Guerra. Guerra is the Central Health Regional Manager, and also the central figure in a damning audit report.

Peter Allen, C.E.O., Ministry of Health [File: May 2^nd, 2014]

Peter Allen

“…Now obviously, naming somebody in a report is quite a different thing than finding somebody guilty of any wrongdoing. I have to say that I have known Melinda Guerra for probably more than twenty years but have never known her to be anything other than an outstanding public officer and an outstanding leader for this region.”

According to the Audit Report, that outstanding leader, Melinda Guerra –  “Submitted, approved and received the proceeds of four reimbursement claims which totaled three thousand four hundred and seven dollars and fifty cents for costs she claimed to have incurred in an official capacity.”

But Guerra never actually incurred those debts. The audit team states that in one instance, a “Reimbursement of five hundred dollars paid to the CHRM, Melinda Guerra, for purchase of food for CORE team meeting at SPP on second May 2013, when food was already provided and paid for from the Vote.” In another instance, Melinda Guerra is reimbursed one thousand nine hundred and seven dollars for out of pocket expenses incurred in pre-paying for a Glow Box, Gel and Powder Materials. Those supplies were never received. On another occasion, Guerra was reimbursed six hundred dollars because she said she pre-paid for four boxes of x-ray films for the San Pedro Polyclinic. Those films never reached their destination. The audit team also found another claim for reimbursement for food, when that food was already paid for.

Melinda Guerra

Like we stated, it’s a detailed report and we’re just skimming the surface. The audit team also states that Guerra knowingly “authorized the preparation and approval of twelve payments that totaled sixteen thousand nine hundred and ninety-seven dollars and ninety-nine cents, which misrepresented the service or item ordered, received and paid for by the CHR.”

In one instance detailed by the team, Guerra and her Finance Officer Judith Swift authorized Smartstream payments for repairs to a golf cart stationed at the San Pedro Polyclinic. The investigation proved that the payments were instead for the purchase of a new golf-cart. There were no supporting invoices. The report states that the payments were a blatant disregard of FO number three-six-six and the Government of Belize’s accounting practices.

And this is a good one. Melinda Guerra and her FO Judith Swift also picked up two Apple Ipads from Fultec Systems, but tricked government by claiming that the payments were for two hard drives.

The report states that in the first instance with the golf cart, the CHRM, Ms. Melinda Guerra and the FO, Judith Swift, both admitted that they knowingly crafted these payments in this manner in order to pay for a new Golf Cart.

Where the Apple Ipads were concerned, the report states that in interviews conducted with Guerra and Judith Swift they both confirmed that they knew that what was ordered and quoted in the Purchase Orders was not what was received by them.

And finally, for today at least, the report states that CHRM Melinda Guerra knowingly “authorized four prepayments which totaled fourteen thousand six hundred and eighty-two dollars, for goods and services that were not received as of the time of the investigation.”

On these occasions, Melinda Guerra authorized payments to one Lachman Tekchandani. He received eight hundred dollars for providing phone cards to rural health nurses. They never received those phone cards. Guerra authorized the payment of nine hundred and seventy five dollars for phone cards to the Emergency Operations Center Team. They never received those phone cards either.

The audit team took special notice of another transaction with Mr. Lachman Tekchandani. In March 2013 Guerra authorized a payment of five thousand dollars to Tekchandani for uniforms to be delivered at some undisclosed time in 2014.

The audit team states that it found that particular transaction highly irregular because, firstly,  it was a prepayment from public funds made in March 2013, for items to be provided by the vendor “sometime in 2014”; a direct contravention of Financial Order number three-seven-one (b), (f) and (g). And two… There was incomplete and improper information to support the alleged uniforms which were to be provided by the vendor.

There’s much more. In fact, we’re practically skimming over details which point to a sustained abuse of authority, not only by Guerra but by her Finance Officer Judith Swift. Tune on Friday, when we’ll tell you why the Matron Roberts Polyclinic’s NHI account is being used to pay for Melinda Guerra’s gym membership. Mike Rudon for News Five.

Central Region Health Manager Melinda Guerra is the central figure in the report, but there is also special attention paid to other persons, including Finance Officer, Judith Swift; Matron Roberts Administrator, Alexy Rosado; and even Ministry of Health C.E.O., Peter Allen. As we said, tune in Friday for much more.