Release Funds To Settle Indebtedness Of NHIA

The Public Accounts Committee (PAC) of Parliament has directed the Ministry of Health to liaise with the Ministry of Finance to push for the release of funds to settle the indebtedness of the National Health Insurance Authority (NHIA) to healthcare providers.

According to the committee, the two ministries should let the Presidency appreciate the urgent need for the release of the funds.

The committee gave the directive yesterday when the acting Chief Executive Officer of the NHIA, Mr Nathaniel Otoo, answered questions related to the NHIA’s indebtedness to healthcare providers as captured in the 2011, 2012 and 2013 Auditor-General’s reports.
 
It came to light during deliberations that some regional NHIA offices owed service providers for up to seven months.

“The problem should be settled among the Health Minister,  the Finance Minister and the Cabinet,” the Chairman of the Committee, Mr Kweku Agyeman Manu, said.

 Indebtedness

On September 2, 2015, Mr Otoo was quoted by the Daily Graphic as saying that the authority owed healthcare providers an estimated GH¢270 million as of February, 2015.

He said the delay in payment was due to some structural and financial challenges, which were being addressed.

When the Daily Graphic approached the Director of Finance of the NHIA, Mr Ahmed Imoro, for an update on the indebtedness of the NHIA to healthcare providers, he said he could not give the figure immediately as it cut across all the 10 regions.

He said he was confident that the PAC’s directive would ensure speedy release of money to the NHIA to enable it to settle its indebtedness.

Besides, he said, the expected release of the money would ensure smooth operations by the healthcare providers.

 Reasons for indebtedness

Briefing the committee earlier, Mr Segbefia said the large number of NHIS subscribers coupled with late release of funds was the main challenge facing the scheme.

He said a committee had been formed to look at the funding differences and claims, with the view to improving the scheme.

 PAC condemns technocrats

In another development, the committee cautioned that it would in future recommend to the Attorney-General (AG) to prosecute public officials who would fail to support financial transactions with documents.

According to the committee, the failure of public officials to obtain documents for financial transactions was “a deliberate act of laziness and negligence of professional duties”.

The committee gave the caution in reaction to the findings in the Auditor-General’s reports that some of the distribution of World Food Programme (WFP) items were done without any documentation.