Saturday, August 3, 2013

THE HOWARD HOSPITAL, ZIMBABWE: Financial issues and Failures



The track record for the financial issues involving Howard Hospital is disturbing. Over the last 20 years, there are a number of recorded instances where monetary and material gifts from foreign donors were delayed, misappropriated, misspent, or simply vanished.

Reserve account monies in the name of Howard Hospital totaling approximately US$42,000 went missing in the 1990’s when Harare THQ changed banks. THQ held all Army accounts, including that of Howard Hospital. A review of the bottom line of all monies held by Harare THQ reflected no loss or shortages of monies ; however, the balance sheet for Howard Hospital was mysteriously short a full $42,000. This was waved off as a mistake in bookkeeping and presumably entered as a ‘correction’..

A new facility was planned to replace the old Howard facility, with construction to begin in 2000. The project was doomed to fail from the beginning. The Territorial Commander at the time, Commissioner Amos Makina, spear-headed the project. The architect engaged had no professional experience in the complex field of designing a hospital, and was incapable of designing one in the African bush and this was noted when Makina was finally persuaded to share the plans with Major (Dr.) Jim Watt the Chief Medical Officer. Not only was the design inadequate for the intended purpose, it was also under-funded at US$1million. A more realistic figure was 3.5 times that when inflation, and other on spot payments were included in the total.  The plans were re-worked to fill the requirements of a bush hospital and approval was given to begin the project. 

IHQ provided an officer to oversee the project and the accounting; Commissioner Makina stonewalled him and kept him from doing either. At the conclusion of building, the project ended up costing US$2million, twice the original estimate.

Sadly however, in the end, the new facility was deemed unfit for its intended use, by the Zimbabwe government. Having never been used, it sits there near the old facility, dilapidated and falling apart. A colossal waste of money.

Donations had a habit of being delayed or disappearing altogether. Consequently, on an ever increasing and demanding schedule Dr. Paul Thistle had to rely on direct donations to keep the hospital operational, with donations often hand-delivered by volunteers or handed directly to him at fundraising events he conducted in Canada during his furlough periods. The direct donations were deposited directly into the Howard Hospital operating account, bypassing the administrative fees assessed by the different Salvation Army HQs as a donation passed through the official donation chain.

The Salvation Army has a long-standing policy of assessing a 10% administrative fee for monies passed through its books in transit to other Salvation Army entities. Therefore, Army policy dictated that a donation submitted at a divisional HQ level would have to be assessed at a 10% fee prior to forwarding the remaining monies to territorial HQ. Then THQ could assess a 10% fee before passing it to IHQ; IHQ could assess a further 10% fee before passing it to the receiving territory, which would assess yet another 10% fee before depositing the remaining balance into the operating account of the destination entity.

In the case of Howard Hospital, Canadian DHQs often waived their assessment fee, as did Canada THQ. It is unknown if IHQ assessed a fee on transferred funds, although we have no reason to believe that they waived it. However, the assessment fee of 10%, and sometimes more, was levied on incoming donations into Harare THQ. There are first-hand accounts of Commissioner Chigariro requiring a 30% assessment fee against designated funds coming into Harare specifically earmarked for mission-based projects in Zimbabwe.

Dr. Thistle’s actions in obtaining direct donations and which bypassed the assessment channels could not be tolerated by Commissioner Chigariro, and she therefore terminated the volunteer medical professionals program, instituted by Thistle, and set about to engage a more pliable doctor as her man in charge of Howard.

Without his knowledge, various charges were brought up against Dr. Paul Thistle at IHQ until his reputation suffered causing a shadow of doubt on his credibility among IHQ and THQ officers. All this is in sharp contrast with the views of the Zimbabwe people at all levels, and fellow doctors and renowned surgeons who think very highly of him and celebrate his achievements. So when Chigariro asked for Dr. Thistle to be removed, the General consented (acquiesced to the demands of Chigariro and Makina) and tasked Commissioner Makina, International Secretary for Africa, and Chigariro to carry out the order, which they did in a vindictive manner that was negligent in not providing (even a year later) a replacement for his skills, nor assuring a continuity of the antiretroviral programs in place for those suffering with AIDS.
FSAOF (Names of contributors on file)

13 comments:

Anonymous said...

good thing I was not or am the general...as their hearts had better belong to Christ..as I'd have forensic accounts going over ALL the books of the hospital and the 2 commissioners offices as well...and then lets see who wants to play chicken ..as rest assured..they'd both lose ..with malice i might add. but it is what it is isn't it. So I'll just encourage all here to pray for God's will to be done and it,like His Judgement will be swift !! Thanks for the update...steve henderson-a watchman on the wall & a nothing and nobody in Christ

Anonymous said...

There is every appearance of some form of corruption going on here. I truly hope this is an issue just in Zimbabwe, and that it will be dealt with.

I would just like to point out that I have never had a donation assessed more than once (10% to DHQ - THQ/IHQ then get their own assessments from the DHQ monies). I believe this is normal in all territories.

Anonymous said...

Thank you for your diligence in pursuing the murky affair. If you hadn't certain heads would have thought that they might get away with it again. And for that matter maybe they have!

Wan't the new General station in Harare or the Howard at one time? Maybe he can shed some light on this?

On the fence about the future

Anonymous said...

Yep - Andre Cox was in Harare. This is from the Army website (http://www.salvationarmy.org/ihq/hcandrecox)

CANDIDATE PROFILE: COMMISSIONER ANDRÉ COX

Commissioner CoxChief of the Staff
International Headquarters

Date of birth: 12 July 1954

Nationality: British/Swiss

Home corps: Genève 1, Switzerland & Austria Territory

Commissioned: 25 May 1979

Married: Silvia Volet, 25 September 1976


Appointments

Switzerland and Austria Territory
Corps (June 1979)

Zimbabwe Territory
PR (July 1987), THQ (June 1992)
Financial Secretary (April 1994)

Switzerland, Austria and Hungary Territory
Head of Communications Department (October 1997)
Business Administrator (February 2002)

Finland and Estonia Territory
Territorial Commander (July 2005)

Southern Africa Territory
Territorial Commander (October 2008)

United Kingdom Territory with the Republic of Ireland
Territorial Commander (May 2012)

International Headquarters
Chief of the Staff (February 2013)

Anonymous said...

Well what a terrible catalogue of affairs. When is this blogspot going to do the right thing and place this in the right hands ... external to TSA to ensure acciuntability and the restoration of The good doctor's status.

Anonymous said...

PR, Financial Secretary, Head of Communications, Business Administration. A an eternal optimist, I'd like to think that General Cox has an impressive record on business matters to be able to deal with this issue. I certainly hope and prat that it will be so.

UK

Anonymous said...

Eternal optimist-UK,

Yes, his service in Zimbabwe from 1987 to 1997 would have pretty much covered the time when this blog report that there was $42k in missing funds. Having been a secretary to a Fin Sec and having worked as an accounts payable and payroll clerk in a DHQ Fin dept for many years, I can't help but wonder why he didn't do something about it. $42k is a lot of money for a grant-aided territory to "misplace" or lose to an error in the books.

Anonymous said...

Oh dear- thank you for that information - I thought it may be too much to hope for realistically. I have to agree. Having been present at one or two occasions during corps audits in the past, financial discrepancies of even less than £1 were highlighted!

Not-so-optimistic
UK

Anonymous said...

It is my understanding that the new
General was born at Born 12 July 1954 (age 59)Harare, Zimbabwe. It is my assumption that his father Ron Cox former Chief of Staff was probably stationed at Howard Hospital. It is my prayer that this General will have the courage to make a positive difference and check to see if Paul would go back to Howard.

Anonymous said...

Well, I am not sitting on the fence. Why was Commissioner Chigariro not fired? Why has TSA not come clean and vowed to correct this wrong doing up the mess? I think the national press should get ahold of all of this debaucle and then you will see some action. Misappopriation of funds is a very serious accusation. Does TSA think it is immune to public backlash? The carpet cannot hold much more under it!!!

Former Canadian Officer- ashamed to lnk myself in any way to TSA now!

Jolinda Cooper said...

In a press release dated March 14, 2012 (http://relzim.org/news/3987/)

Salvation Army hospital in Chiweshe looks for funding
March 14, 2012 , published in News by Sinikiwe Mlambo

A multi-million dollar hospital project in Chiweshe at Howard Hospital hangs in the air after failing to meet the Ministry of Health requirements. This forced patients to remain in overcrowded wards at one of the biggest hospital in Mashonaland Central.

The new hospital that was completed in 2006 failed to take in patients after the Ministries of Health and Public Works deemed them to be unfit, citing structural defects in the completed structure.

Salvation Army Lieutenant Colonel Langton Kazimpingani, who is the secretary for business administration, said that the present hospital complex is failing to cope with the influx of patients, some of whom travel from as far as Beitbrigde. “The Ministries said that the hospital had defects and recommended that we make new structures especially in the sewerage system and also the theatres.”

However, the church is struggling to raise the required money to make the necessary adjustments to open the facility up for patients. “We were told not to open the facility until we have addressed all the structural defects but our major constraint is a lack of funding because as a church we do not have any other source of funding. In order to make the required renovations we would need something between $3-5 million but as a church we do not have the money,” said Kazimpinga.

Patients interviewed said that they are short of space in the hospital that is now showing signs of age.

With the public health sector still under stress, the sick in Zimbabwe have turned to mission hospitals that are funded by churches. However the increased volumes of patients has not been followed by infrastructural expansion due to exorbitant costs of construction in Zimbabwe.

Jolinda Cooper said...

So, the $2 million spent on the original project now requires an additional $3-5 million?

Structural defects in a brand new building? Since the officer sent from IHQ to supervise this project was not allowed in, who did supervise it? Why are there structural defects to be corrected.

I'm no architect or home builder, but even *I* know there is a punchlist that is used when something is being built. The contractor(s) follow the list, and the codes, and they do it right or they don't get paid.

Who is following up on the recourse to the builder/contractor that did such shoddy work?

Anonymous said...

My guess is 'no-one'. Another $2million and an opportunity to 'do the most good' (as advertised) wasted, and a huge failure of SA financial managers.