NMS bosses in row

May 04, 2003

TOP officials at the state-owned National Medical Stores (NMS), Entebbe, are embroiled in a row as government agencies probe the corporation

By Yunusu Abbey

TOP officials at the state-owned National Medical Stores (NMS), Entebbe, are embroiled in a row as government agencies probe the corporation.

The NMS general manager (GM) Robert Rutaagi and corporation secretary (CS) Asuman Kiyingi are at loggerheads.

Despite the in-fighting, on April 15 health minister Brig. Jim Muhwezi wrote to Rutaagi, extending his contract for another four years effective January 1, 2003. But the 16-member NMS board is yet to decide on Kiyingi’s fate.

Documents indicate Rutaagi and Kiyingi have on several occasions, disagreed over issues and exchanged strongly-worded memos, which The New Vision has seen.

In a ‘strictly confidential’ memo dated April 25 to six board members, Rutaagi, who joined NMS in June 2001, called for Kiyingi’s resignation.

“The current level of conflict between the GM and the CS and considering where the CS has taken it, if there is to be peace and harmony and avoid making NMS so ungovernable to the extent that all gains are lost, it would warrant that he (CS) is advised to tender in his resignation,” Rutaagi said.

Rutaagi’s 14-page statement was copied to NMS board members, Prof. Andrew Otim, Prof. W. W. Anokbonggo, Jenina Nasimolo, John Bagabirwa, Dr. Charles Ibingira and Benon Wanume.

Rutaagi alleged Kiyingi had “endlessly fuelled conflicts in NMS.”

But in an April 15, 2003, memo, Kiyingi said, “I did indicate to the board during the last meeting that the biggest problem between the CS and GM, which in many instances is construed as a challenge to the GM’s authority, is the lack of regard for established procedures.”

“The above clearly demonstrates the potential risks the corporation is exposed to when procedures are violated. Unnecessary misunderstandings and conflicts are also created as a result,” Kiyingi said.

He enumerated the main issues being investigated, citing the sh30m which NMS paid to Global Business Press for a sixth of a page insertion advert in the London-based Weekly Telegraph.

Dated October 23, 2002, the voucher showed that a sum of sh30,172,824, then equivalent to Euro 16,830 or $16,762.68, was paid to the Global Business Press for the advert.

“I was not involved in this transaction at any stage. The head of finance and accounts drew the attention of management to the matter when she projected it as an exceptional expenditure in the accounts for the month of October 2002,” Kiyingi said.

He said the GM requires the authority of the board to spend above sh25m on non-trading stocks.

“The board may also wish to know that an apparent sister company to the above, Global Press 2000 Ltd, secured a sh13.5m contract to produce the NMS Mediscope Journal without any form of tendering contrary to established procedures,” adds the statement.

Also under probe is the way NMS contracted a local firm, Fraud Control Africa, to carry out investigations in the organisation following allegations from the IGG’s office.

They were paid US$500 per day for 14 days.

Disagreement between Rutaagi and Kiyingi over plans to buy some new AIDs drugs (skin cream), from an American company, CAC Pharmaceuticals Ltd is also reported to have strained their relations.

NMS was also accused of buying poor quality gauze absorbent from Medical Products, a local firm and appointing Landmark Pharmaceuticals to offer procurement services.

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