The new management of Montefarm claims that most of the recommendations of the State Audit Institution (DRI), which last year issued a negative opinion on the audit of the regularity of that public institution, were followed, which is why the finding was forwarded to the prosecution, and the former director, among other things, was dismissed from that position.
In the report on the implementation of the recommendations, which Montefarm submitted to the SAI at the end of June, it is stated that the recommendation that the Board of Directors is obliged to adopt financial reports and written reports on the work at board meetings in accordance with the Law on Health Care and the Statute has been complied with, which must be prepared minutes. They claim that the financial report for the year 2023 was adopted conditionally by the Board of Directors, only in order to comply with the deadline for submission to the competent institutions.
Montefarm states that the development of a new systematization is in progress, which is why it is in the implementation phase of the recommendation to include all pharmacies operating within that institution, with workplaces and the number of executors, in the pharmaceutical protection sector. SAI also recommended that in the Rulebook on the systematization of positions, the same length of necessary work experience should be provided as a special work condition for employees who are sector managers, for the sake of equality, because they have the same salary coefficient and similar responsibilities. In Montefarm, they state that this recommendation is also in the implementation phase due to the creation of a new systematization.
From the same result, it is concluded from the report, Montefarm has not yet implemented the recommendation that the internal audit be organized as a separate organizational unit or that these tasks be performed by the Ministry of Health. In Montefarm, they claim that they are waiting for the final answer from the Ministry of Health, but also that they are certainly working on a new systematization, because the valid one foresees only the position of an internal auditor. The SAI previously recommended that the duties of that position be moved from the sector for economic-legal and general affairs. Head of the collegium responsible for auditing Montefarma Branislav Radulović he confirmed to "Vijesti" that the institution received a report on the implementation of the recommendations and that in accordance with the work program it will verify the allegations from that document.
They claim that they have put the cessions in order
At the beginning of this year, Montefarm received a positive opinion on the annual financial report for 2022, but a negative opinion on the regularity of operations.
That is why the audit of the SAI was submitted to the Supreme State Prosecutor's Office, which forwarded the case to colleagues from the Special State Prosecutor's Office for jurisdiction and action. Even after three months, SDT "Vijesta" did not answer whether a criminal case had been established and at what stage. The regularity audit determined that Montefarm did not comply with the Law on Management and Internal Controls in the Public Sector, the Law on State Property, the Law on Public Procurement, the Law on Obligations and the Regulation on the Method of Keeping Records of Movables in all material aspects. and immovable property and in the inventory of state-owned property...
The competent DRI Collegium gave "Montefarm" 36 recommendations. From the findings of the SAI, it was also concluded that at the end of 2022, Montefarm took over the debt of the drug wholesaler Medicalana in the amount of 80.000 euros to a commercial bank, although at that time, according to the documentation, it did not have any debts to that private company. The SAI stated in the report that the cession agreement was concluded without complete, credible financial documentation, that is, that payment by cession should be preceded by a debtor-creditor relationship.
DRI recommended to Montefarma that this institution, the Clinical Center of Montenegro and the Health Insurance Fund (FZO) and other public health institutions document the payments they make under the cession contract, so that each contract should contain the number, date and amount of the invoice to be pay in that way, which would fully justify the spent public funds, and that payment by cession should be preceded by a debtor-creditor relationship. Montefarm stated that the recommendation has been implemented and that cessions are preceded by settlements between Montefarm and public health institutions.
Breaking the law to save a life
The SAI previously recommended Montefarma to comply with the provisions of the Law on Public Procurement and the Rulebook on Simple Procurement, and to plan public procurement according to needs and allocated funds on an annual basis. Montefarm informed the SAI that this recommendation is in the implementation phase and that they informed the inspector about the real situation in practice, where it is not possible to plan certain public procurements in advance due to the need for medicines that are procured according to the submitted approvals of the Ministry of Health and the FZO, and which arrive once up to twice a week and it is always about specific diseases, as well as emergency situations related to traffic accidents, injuries, fractures. They explain that they receive urgent care from public health institutions, so any delay in the form of waiting for legal deadlines would endanger their health and life.
In Montefarm, they state that in the procedures they will carry out, they will increase the amount of drugs and medical devices that are most often procured under approvals, and thus reduce the number of procurements via pre-invoice/pro-invoice, i.e. fiscal invoice.
Adjusted receipts and arranged representations
In that institution, they claim that they have implemented the recommendation that compensation and other benefits be paid to the members of the board of directors based on the decision made by the authority or work body that appointed them, because the decision from the end of March adjusted the salaries of the president and members in accordance with the Law on Salaries in the Public sector.
According to Montefarma, the recommendation to conclude work contracts in accordance with the law, with the agreed remuneration, with the obligation of the executors to submit certificates of labor legal status and reports on the activities carried out according to the concluded contracts, with the provision of supervision and control, was implemented.
In Montefarm, they also claim that they have implemented the recommendation not to hire intermediaries - agencies for the temporary assignment of employees for jobs provided for by systematization. They stated that this was solely due to a large number of sick days, and all in order to carry out the work process smoothly.
They also claim that they acted on the recommendation that, in accordance with the Law on Management and Internal Controls in the Public Sector, an internal procedure would be adopted that would regulate the expenses of the representation, the right to use the representation and the maximum costs on that basis. The operations of the previous administration were controlled by the commission of the Ministry of Health, and then, among other things, it was determined that 9.000 euros were planned for the expenses of the Montefarma national team last year, and 40.000 euros were spent.
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