Rot in the System: ₦32M Debt Scandal Rocks OAU Teaching Hospital

Secrets Reporters

A recent incriminating audit report obtained by SecretsReporters has revealed a staggering failure by the Obafemi Awolowo University Teaching Hospital (OAUTH), Ile-Ife, Osun State, to recover outstanding debts amounting to ₦32,250,706.30 from thirty-three Health Maintenance Organisations (HMOs). The report paints a grim picture of weak internal controls and alleged administrative negligence at one of Nigeria’s leading federal medical institutions.

According to the audit findings, the hospital’s management violated provisions of the Financial Regulations (FR) 2009, which mandate prompt payment for all services rendered by government establishments. Paragraph 224(ii) of the regulation clearly stipulates that payments should be made immediately upon completion of service—or even in advance—while paragraph 224(iii) prescribes systematic follow-ups, reminders, and, where necessary, legal action to enforce payment.

However, the audit observed that as of December 31, 2020, the hospital had yet to recover over ₦32 million owed by the HMOs. Despite the mounting debt, OAUTH reportedly continued to provide services to these defaulting organisations, effectively digging itself deeper into financial quicksand.

The auditors further noted that no meaningful steps were taken to reclaim the debts. There were no legal actions, follow-up communications, or clear documentation of recovery efforts. “There was no evidence of concrete efforts made by the hospital to recover the debts,” the report bluntly stated.

These anomalies, the report suggested, stemmed from a weak internal control system within the hospital’s administration. The lapses have exposed the institution to potential loss and possible diversion of government funds, raising red flags over financial stewardship at the teaching hospital, the audit said.

In a development that raises more eyebrows, the hospital management reportedly failed to respond to the audit query. The silence from OAUTH, according to the report, means the findings remain valid and unaddressed until concrete corrective measures are taken.

The auditors were unsparing in their recommendations. They urged the Chief Medical Director (CMD) to justify the non-recovery of the debts before the Public Accounts Committees of the National Assembly.

They also recommended that the CMD take immediate steps to recover the ₦32,250,706.30 owed to the hospital and forward evidence of recovery to the same committee.

Furthermore, the report warned that failure to act could attract sanctions for gross misconduct, in line with paragraphs 3112 and 3129 of the Financial Regulations 2009. The auditors insisted that accountability must not only be demanded but enforced to protect public funds from waste and abuse.

The revelation adds another layer to Nigeria’s long-standing struggle with institutional inefficiency and financial indiscipline within public establishments.