Report accuses health and social welfare ministry of financial wrongdoing

An investigation by the Supreme Board of Inspection (NIK) has found major financial irregularities in the Ministry of Health and Social Welfare. NIK accuses the ministry of illegally spending zl. 239 million on so-called central purchase of medicines that were later given to independent public healthcare institutions free of charge. It also says the ministry delayed the date for closing a World Bank loan. In 1999 only $1.5 million of the loan was used, while interest and special loan fees amounted to $2.8 million. The ministry is also guilty of not implementing 60 regulations. In addition, many specialists from outside the ministry have been hired and paid up to zl. 1,500 a day to work for the government's plenipotentiary cabinet. And, despite the fact that a considerable amount of money was assigned to buy a new computer system for pension funds, it was not purchased. The ministry says the latest report is the most favorable in the last three years as no fraud or abuse has been reported. "The report mentions only minor irregularities and pointless actions," said deputy Health Minister Aleksander Grad. (Rzeczpospolita, page A1, A2) J.K.