According to the Auditor General's report, the hospital had estimated to collect 13 billion Shillings in the financial year 2018/2019 but only realized 3.94 billion Shillings representing a variance of 9.05 billion Shillings.
The Executive Director of Mulago National Referral Hospital Dr
Baterana Byarugaba has attributed failure to collect 9 billion Shillings in
Non-Tax Revenue (NTR) on the slow renovation works.
Dr Baterana together with other hospital officials was on Tuesday appearing
before the Parliament’s Public Accounts Committee (PAC) - Central Government to
respond to audit queries raised by the Auditor-General in the financial year
2018/2019 report.
According to the Auditor General's report, the hospital had
estimated to collect 13 billion Shillings in the financial year 2018/2019 but
only realized 3.94 billion Shillings representing a variance of 9.05 billion
Shillings.
When tasked by PAC Chairperson Nathan Nandala Mafabi to explain the inconsistency in
NTR collections, Dr Baterana argued that the hospital management had hoped that
the renovation and subsequent hand over of lower Mulago would be completed in
the first quarter of the financial year 2018/2019 but this did not happen which affected revenue performance from the private patients' scheme.
“This would have boosted the revenue collections because of the
new theatres and specialized medical equipment that have been put in place.
Currently, some parts of lower Mulago housing the Private outpatients'
department, diagnostics and theatres have been opened to the public and are
operating. Final works are on-going,” said Dr Baterana.
Nandala quizzed Baterana on whether the hospital was benefiting from increased
revenue as a result of the newly commissioned Women's and Neo-natal hospital.
However, Baterana noted that the management of the new hospital had been
separated from Mulago.
He also noted that the elevation of Kiruddu Hospital and Kawempe
Hospital to referral hospitals had reduced Mulago's revenue collection.
//Cue in: “so in short…
Cue out:…tree without branches.”//
The hospital management was also tasked to explain the reported
high burden of domestic arrears. The Auditor General’s report noted that a
review of financial statement, supplier invoices and court judgments revealed
domestic arrears totalling 5.75 billion which figure increased from 4.26
billion shillings in the financial year 2017/2018.
In response, Baterana said that part of the
verified domestic arrears, 3.85 billion shillings were for electricity, 103.8
million shillings for court awards and 1.79 billion shillings Appropriations in Aid received
in advance.
Baterana said that the hospital has continued to request the Ministry
of Finance and parliament to increase its budget to cater for the
ever-increasing electricity bill that will continue to shoot up due to the specialized
medical equipment whose power consumption is high.
