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Winnipeg Free Press - ONLINE EDITION
Auditor finds WRHA brown envelopes recorded properly
There is no evidence that the Winnipeg Regional Health Authority ever got cash in brown envelopes from medical suppliers receiving procurement contracts, the provincial auditor general reported today.
"The Value-Adds that WRHA received took the form of cheques as well as product, equipment and education," Carol Bellringer said in a 32-page report on an issue first raised in the Free Press more than a year ago.
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"We found no evidence that anyone benefitted personally from Value-Adds. The cheques were received in the form of unrestricted or restricted funding. Our audit found that all such funding was properly recorded by the WRHA. There was no indication that there was every any 'cash' in 'brown envelopes,'" Bellringer said.
She said, however, that controls regarding the receipt of products, equipment and education from suppliers "were weak."
She said that tendering for goods and services and construction contracts was "well-controlled and included a competitive bidding process" except for project consultants for construction contracts, which were not tendered.
Meanwhile, the WRHA was quoted in the report as saying that its board of directors formally passed a motion late last month to stop accepting the so-called value-ads. It said that it has not received or accepted any value-adds from any bids submitted after April 2007.
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