COA raises red flag on implementation of NKTI’s grant of credit line

Published April 7, 2018, 3:27 PM

by Francine Ciasico

By Ben Rosario

The Commission on Audit raised a red flag on the implementation of the National Kidney and Transplant Institute’s grant of credit line to hospitalized employees and their dependents.

COA logo (Manila Bulletin)
COA logo (Manila Bulletin)

COA, in its 2017 audit report released recently, noted that unpaid hospital bills and charges of NKTI employees have ballooned to P6.775 million, which have been past due for one to 20 years.

The same audit report disclosed that the NKTI failed to realize income estimated at P16.3 million due to the delayed completion of the construction for the extension unit of its dialysis center.

“There were 80 accounts totaling P6.170 million that exceeded the allowable maximum of P25,000 per employee/personnel,” COA auditors noted.

They disclosed that excess to the P25,000 cap in allowable credit ranged from P25,231.39 to P1.224 million for an employee.

Granting employees and their dependents hospital services to be paid through salary deduction is allowed Hospital Order No. 11 that was implemented starting 1999.

“Implementation of Hospital Order No. 11 s. 1999 re Employees Payment Scheme was not properly observed, resulting in the accumulation of employees’ unpaid hospital bills/charges in the total amount of P6.775 million which have been past due for one to 20 years,” COA reported.

Names of 503 employees who have availed of the credit assistance were included in the list of accounts that have aged from one to 20 years.

Auditors examined the accounts of 120 selected employees and discovered that some of them have already resigned or are now separated from the NKTI without settling their debts.

“Employees who were granted clearances and paid/given their last salary/terminal pay/separation pay without liquidating unpaid accounts with the Institute,” COA reported.

It also noted that some personnel under contract service and as management consultants were also unable to settle their remaining account balances.

Reacting to the delayed completion of the Hemodialysis Extension Project, the NKTI management put the blame on the equally delayed construction of the warehouse extension.

According to COA, the failure of the NKTI to open the HEP in time had resulted in the nonrealization of P16.327-million income from the additional 15 hemodialysis machines that were set to be installed in the area.

 
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