7 News Belize

Fin Sec. Weighs in on Health Ministry's 1.6 Million Dollar Project Proposal
posted (August 2, 2019)
Today's even gave the press an opportunity to ask the Financial Secretary about 2 matters that came to the general public attention earlier this month.

For several days now, we've been telling you about a proposal which the Ministry of Health has made to the Ministry of Finance. The Ministry of Health is seeking to use 1.6 million dollars out of the National Health Insurance fund reserve, for which the Social Security Board.

As we told you, Senior Finance Officer Artemio Osorio wrote a memo on behalf of the Financial Secretary to Health CEO George Goff, indicating that the Finance Ministry has "no objection" to the award of a 1.68-million-dollar contract for the construction of a Central Medical Stores Building in Belmopan.

The problem is that even in the memo, it is made clear that, quote, "Funds to cover this expenditure will be obtained from a grant from the National Health Insurance Fund Reserve managed by the Belize Social Security Board." End quote.

So, how can the Ministry of Finance give permission for a disbursement from the NHI Fund Reserve, when Social Security Board is solely responsible for it?

Opposition Leader John Briceño wrote to Prime Minister Dean Barrow to raise his concerns about the proposed arrangement. The PM responded promptly agreeing that only SSB can agree to disburse that sum of money. He also said quote, "In my view, and especially in the current circumstances, MOH ought not to make any such application."

We sought clarification with the Financial Secretary today, and here's how that conversation went:

Joseph Waight - Financial Secretary
"The Ministry of Health approached the Ministry of Finance for approval to enter into a contract for the construction of a warehouse. The letter stated that they identified funds from the NHI reserve fund, which is under the management of the Social Security Board. Our response was that we have no objection to the issuance of the contract. The tender was in order - value for money, they did what they were supposed to do. But we also then said that we understand that the money will come - the money is being sourced from the Social Security Board. It was never our - it shouldn't be construed or intended or - it's not our place to give, or to decide on the use of Social Security money. The Prime Minister, I think, basically said pretty much the same thing, and chipped in that in his view, it should not be - the ministry should not approach the Social Security Board. So, that should put an end to that story."

Reporter
"We understand that the bidder, the contract holder, in this case, is the brother of Minister Rene Montero. Did this raise any kinds of concerns in terms of the tendering process?"

Joseph Waight
"I don't think so. Relatives of Government are free to make - they're not excluded from doing business with the Government. There was a call for tenders. 4 or 5 responses, one of which was - I cannot remember the name - but it turned out to be the lowest, best-qualified bid. When you look for a bid, [the bidder] has to be qualified to be able to do the work, the history of work, previous, similar work, also a bid price. That bid came out to be the lowest qualified bid, and therefore, it was accepted."

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