NMS seeks to block audit of cancer institute by finance

National Medical Stores- NMS wants the High court in Kampala, to enter Judgment against Secretary to Treasury Keith Muhakanizi, questioning why he ordered a Special Audit against Uganda Cancer Institute, over the supply and distribution of drugs by there.

NMS says by letter dated 19/July/2016 and addressed to NMS plus Uganda Cancer Institute, Muhakanizi informed them that he had tasked the Directorate of Internal Audit in the Finance Ministry to carry out a special audit of the supply and distribution of drugs at Uganda Cancer Institute by NMS, and that he had appointed an audit team of four people.

However NMS objected to Muhakanizi’s actions, saying the audit team that had been appointed wrongly included Paul Musimami, the Internal Auditor of Uganda Cancer Institute, which would cause a conflict of interest and would be against the rules of natural justice, considering that Uganda Cancer Institute was among those to be audited under the special audit exercise.

NMS also maintains that the law only mandates the Auditor General to carry out the said special audit, and he had actually carried out audits on NMS’ Corporation and raised no query on the transactions in issue.

That the powers to deal with the quality of drugs supplied by NMS, lay with National Drug Authority, while the power to monitor compliance of NMS procurement processes lay with the Public Procurement and Disposal of Public Assets Authority.
NMS also wants an injunction stopping Muhakanizi from any further conduct of Special Audits in breach of the provisions of the law, while the one that was carried out in 2016 should be expunged and struck off the public record.

Through its Lawyers Peter Kawuma of K and K Company Advocates, NMS says they filed the case in August/2017 and the Attorney General in this case was given 15days to respond, which have since expired without Muhakanizi’s defence.

The matter was coming up today for parties to see how to proceed,  but NMS Lawyer  who had turned up with a representative of the Plaintiff were told that presiding Judge Margret Oumo was on leave, and he was given a date of 9/May/2018 when both parties are expected back in court.

Story by

Veronica kayaga

April 04 2018