The Public Relations (PR) Department of Korle Bu Teaching Hospital has explained the hospital's decision to award Stanbic Bank a contract for onsite banking services at the facility and the reason for terminating its contract with uniBank.
Original Title
Clarification of distortions in respect of the contract for onsite banking services in Korle Bu
The Public Relations (PR) Department of Korle Bu Teaching Hospital has explained the hospital's decision to award Stanbic Bank a contract for onsite banking services at the facility and the reason for terminating its contract with uniBank.
The Public Relations (PR) Department of Korle Bu Teaching Hospital has explained the hospital's decision to award Stanbic Bank a contract for onsite banking services at the facility and the reason for terminating its contract with uniBank.
KORLE Bu TEACHING HOSPITAL
2.0, BOX,
KORLE BULACCRA.
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‘And the date ofthis
Letter should be quoted
233 302 6677591673046
233 302 667759
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NEWS RELEASE
SUBJECT: CLARIFICATION OF DISTORTIONS IN RESPECT OF THE
CONTRACT FOR ONSITE BANKING SERVICES IN KORLE BU
RELEASE: IMMEDIATE
On behalf of the Hospital, 1 wish to clarify distortions carried in sections of the media in
respect of the onsite banking services in the Korle Bu Teaching Hospital.
‘The Hospital's decision to outsource its revenue collection followed a directive by
Government in 2008 that all public institutions should cede the collection of their
revenue to selected banks in the country.
With the support of the Ministry of Finance and the Controller and Accountant General's
Department, the then Merchant Bank was selected for this exercise for the first time in
2008.
Following a review of their operations, Merchant Bank's performance was found to be
below par. This led to the abrogation of the contract with them and the selection of the
HFC Bank, through a competitive process, to take over the onsite banking services in
Korle Bu.
Again in 2015, a review of HFC Bank's operation was conducted and it was established
that its performance was not meeting the requirements of the Hospital. This was
communicated to them and the process for searching for another bank that will provide
a solution to the chronic revenue leakages bedeviling the Hospital.
A total of six banks were shortlisted to undergo a competitive selection process which
was scored in 2015, Stanbic Bank emerged first and UniBank was 4". A decision was
taken to select Stanbic Bank that was first and UniBank that was 4" to partition the
collection of revenue in the hospital.
When the Hospital submitted the names of the two banks to the Controller and
Accountant General's Department for approval, it raised issues about weaknesses in
UniBank’s operations in two other hospitals in the metropolis. These issues were:
1. Reconciliations challenges,
2. delays
3. non-provision of real time access to relevant stakeholders.In spite of the advice of the Controller and Accountant General's Department, an MoU
was signed, appointing UniBank to simultaneously collect revenue in the Hospital with
Stanbic Bank with the proviso that any party can terminate the MoU giving 90-DAYS
NOTICE OF TERMINATION.
As the two banks started the onsite banking services the leakages persisted,
Management decided to search for an End-to-End Hospital Revenue Collection Software
to integrate and network its operations.
Stanbic Bank and UniBank were both requested to submit proposals for an End-to-End
Hospital Revenue Collection Software in 2015. The two banks were invited to make
presentations on the End-to-End Hospital Revenue Collection Software on two different
sessions in 2015. Stanbic Bank successfully presented an efficient software while
UniBank failed to turn up during the two presentation sessions. Management thus
awarded a contract to Stanbic Bank to pilot the new software in the entire hospital
which is valued at USD240,000. The software if implemented will simultaneously reduce
revenue leakages and increase our revenue base while improving the hospital's
operations in several other areas, both operational and clinical care.
The Stanbic Bank approved End-to-End Hospital Revenue Collection Software was
obviously not compatible with the UniBank's software. Management therefore decided
to discontinue the MoU with UniBank in order to enable Stanbic Bank deploy the new
software throughout the entire Hospital - covering areas where Stanbic and UniBank
were collecting revenue. In view of the Memorandum of Understanding (MoU) signed
between Korle Bu and the banks for the onsite banking services, in which either party
can terminate the contract by giving a 90-day notice, a Management decision, a notice
of termination was given to UniBank on 12 July 2017.
Events thereafter have made Management to rescind the decision to terminate the
contract with UniBank.
So Korle Bu is currently in a stalemate where it continues to lose all the benefits of the
End-to-End Hospital Revenue Collection Software.
It is important to stress that the management decision to engage Stanbic Bank as the
sole institution for the onsite banking services in 2016 predated the appointment of the
ef Executive who started work in June 2017.
MUSTAPHA SALIFU
HEAD OF PUBLIC RELATIONS
FRIDAY, SEPTEMBER 29, 2017
0244725938