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In a recent audit by the Auditor General on the Ministry of Health's activities for 2022 and 2023, a number of financial discrepancies and issues have come to light, particularly in the way grants were distributed and payments were handled. The audit, which reviewed a sample of the ministry's transactions over the two years, highlighted weaknesses in several areas, including the granting process and invoicing for patient treatment abroad.
Grants to Unqualified Bodies
a €258,793 discrepancy was discovered in the ministry's accounting records...The amount was incorrectly credited to the ministry’s administration
One of the most significant findings was the flawed process in awarding grants to organizations that did not meet the necessary criteria. In 2022, the ministry granted a total of €1.75 million to 20 entities, which had already received substantial funds (over €4.6 million) from other government ministries. Similarly, in 2023, 21 entities received €1.66 million in grants, despite having already received €3.8 million from other ministries.
Moreover, the audit revealed an instance where an organization received a grant far exceeding the €500,000 limit set under the de minimis State Aid Scheme. One such grant involved an entity that received €70,000 despite already being awarded over €1 million in 2021. The report pointed out that in many cases, grants were awarded despite negative recommendations from the evaluation committee or the Ministry of Health, with no adequate justification provided for these exceptions.
Issues with Patient Treatment Payments
The audit also uncovered concerns with payments made for sending patients abroad for medical treatment. In 2022, the Ministry paid out €10.7 million for patient dispatches under the National Health System. However, the audit found that key forms used to process these payments were not standardized enough to properly assess the cost of treatment. This lack of thorough documentation makes it difficult to perform a full audit of the expenses. The Auditor General’s office recommended that the Ministry work with health authorities from other EU countries to ensure proper auditing of these invoices.
Financial Oversight Gaps
In addition to grant-related issues, the audit pointed out several other financial missteps. The Ministry of Health paid €100,000 in grants to the Cyprus Federation of Patients' Associations (CPA), even though the necessary documentation, such as income statements and audited financial reports, had not been submitted as required. Furthermore, the ministry did not verify whether the CPA had a sufficient reserve of funds before granting the money, violating guidelines from the Ministry of Finance.
Additionally, a €258,793 discrepancy was discovered in the ministry's accounting records for 2023. The amount was incorrectly credited to the ministry’s administration, but upon investigation, it was found to relate to funding for migrant health services, not the ministry’s operations.
Moving Forward
The Auditor General's report clearly outlines the weaknesses in financial oversight and grant allocation within the Ministry of Health. These issues raise concerns about the proper use of public funds and the transparency of financial transactions within government departments. Moving forward, the Ministry is expected to address these gaps and ensure better compliance with financial procedures, especially when it comes to awarding grants and handling payments for medical services.
In response, the ministry has acknowledged the findings and promised to take corrective action. However, the public will be watching closely to see if these promises result in real change or if similar issues continue to arise.
*This article was translated and summarized from its Greek original
