eBusiness Weekly
Business Writer
Premier healthcare institution, The Avenues Clinic is investigating suspected procurement irregularities involving senior executives amid fears the Harare-based hospital could have suffered heavy financial prejudice running to millions of dollars.
The irregularities involve possible improper conduct on procurement by former and current senior executives and managers, sources familiar with the development told Business Weekly.
The Avenues Clinic chairperson Pearson Chitando confirmed the investigations. Managing director Merissa Kambani has since been suspended to facilitate a forensic audit into the matter. Sources said the hospital could have “lost significant” amounts of money through irregular procurement of equipment and various consumables, done through third parties.
“Some irregularities in procurement were observed and there was suspicion that some former and current senior managers were involved,” said one source who requested not to be identified. “This involved importation of equipment and consumables through third parties, some of which have been disowned by the manufacturers.
“There are cases that have gone to the courts and it is for the reason that the board ordered a forensic audit following suspicion that the hospital could be losing a lot of money. The idea is to get to the bottom of the matter and improve the procurement systems.”
The sources said some of the equipment, mostly imported from China, were not durable and of the same high quality as similar machinery supplied to most European countries by the same manufacturers.
This publication also gathered that while it was claimed that Mrs Kambani was on leave, “she was actually suspended and will be given an opportunity to respond to some of the allegations,” another source said.
Kambani could not be reached for comment at the time of going to print yesterday. Chitando said The Avenues Clinic final report would be complete soon. “Medical Investments Limited, trading as The Avenues Clinic, wishes to advise that the forensic audit is still ongoing and we hope that it will be completed soon,” said Mr Chitando in a written response to the Business Weekly.
“The board felt it prudent that in terms of corporate governance, procurement processes be subject to an audit. “The board is following internal due process, which is ongoing. In view of the fact that both the forensic audit and internal processes are ongoing, it is premature for us to determine the final outcome of both the forensic audit and internal review processes.
“We however, categorically state that the hospital is discharging its responsibility in healthcare delivery without any disruptions,” Mr Chitando added. A board member, who spoke on condition of anonymity said the preliminary report unearthed significant proportions of irregularities in the procurement process at the institution.
“It is filthy,” said the director in reference to the initial results of the investigation. “Things have not been done in a proper way and in the process, massive prejudice to the hospital is feared.”
Established in 1983, The Avenues Clinic is the flagship hospital for Medical Investments Limited, which also runs St Clements and Montagu clinics in Harare, according to its official website. It was started as a private maternity clinic for the residents.
However, the involvement of a consortium of business leaders saw it prudent to expand the hospital into a multi-faceted institution that would complement existing facilities.
The multidisciplinary hospital offers a range of premium specialist services, modern facilities, high-tech equipment as well as outstanding nursing care.
