The General Auditor of Salta (AGPSA, for its acronym in Spanish) found that the Provincial Health Institute (PHI) to carry out contract without respecting the 6838 Act, which governs the province on such contracts. In addition, it verified that some areas are managed exclusively by the system of direct purchase and that there are sectors that are unaware of the framework governing their purchases.

Even though the Provincial health care has Resolution 74/02 of Purchasing and Supply regulating their hiring, to the audit, the legislation "departs in several respects from the 6938 Act."

It’s that according to the report adopted this year on data from 2005-2006, the internal regime provides for "procurement by direct purchase, provided as exceptional, very broad assumptions" and "overcomes the cap of $10 million," while the "provincial law only approves $5 million."

Even Article 34 of the Resolution provides that the procurement be conducted through direct purchase in cases of "drug procurement, pharmacy and perfumery accessories for Health Care, when those products are bought from a producer or exclusive distributors, or purchase equipment elements for prevention, cure and rehabilitation of the insured."

For the Watchdog "these assumptions are so broad that take the exceptional character that the system of direct purchase should have."

Also, the report notes that the prosthesis area makes "all contracts by direct purchase" and redefines the standard referred to this method which "is intended to address outstanding issues", but that "in this sector it is used to all occasions."

Another of the AGPSA’s observations was that some "sectors within the Institute are unaware of the regulatory framework and corresponding Resolution 6838 -Law 74- such as the Department of Social Optics" where also "the purchasing procedure is direct and the record does not show sufficient justification of why that procedure was chosen.”

Moreover, the Institute "does not make programming purchases, as required by Law" and the internal resolution 74/02 "does not establish what expenses can be met with Petty cash, or define a monetary limit for them."

Agreements with Providers

According to the report, "the contracts with medical providers and suppliers of inputs or services lack explanation to justify and demonstrate their appropriate selection."

Even the Central Procurement Unit (UCC) reported that "contracts with laboratories, drug stores and pharmacies, which are not enabled in the register of suppliers of the state" were conducted. Only eight companies fulfilled this requirement.

In turn, the Watchdog said that in the internal regulation of the Institute "there is no clause requiring they be suppliers to the state, in bids or direct purchase."

Among other things, following an agreement with the House of Northern Health Providers of the Province of Salta, the Audit found that the Institute "paid as administrative expenses which were actually Administrative Support", therefore, expenditures necessary "to comply with the provision, and that should be supported by the provider and not by the IPS."

Procurement of Supplies and Services

When auditing the Pharmaceuticals sector, the Watchdog found, that it was not in accordance with applicable provincial legislation because "they do not use the computer system created for the IPS or a standard one, nor do they have procedural manuals and they frequently use direct contracting."

In the area "they also do not have proof (-of their operations as- purchase orders, invoices, packing slips and proof of receipt of the products purchased), and it is the Treasury that issues the payment order and make payments without complying with the technical separation that should exist," the report said. 
As for the lease agreements, the AGPSA explains, they are also not in compliance with the Procurement Law and even "several contracts have expired but the IPS is still paying the respective service."

Finally, the Salta Audit finalized its report indicating that "the system of internal control is informal, has insufficient evidence and profound weaknesses."