An investigation into claims from Welsh Conservative AM Darren Millar has concluded that the Welsh NHS was for years overcharged for fresh produce and there is currently no guarantee the money can be recovered.
In July 2015 Shadow Health Minister Darren Millar raised concerns with the Wales Audit Office after a series of spot checks over four months revealed that the Welsh NHS could have overpaid £385,614.55 for just five everyday items – apples, bananas, jacket potatoes, salad potatoes and cucumbers.
The 2010-14 contract for most Welsh health boards stipulated that prices for fresh fruit and vegetables should be 2% above market prices for the previous four week period set out in the weekly publication Fresh Produce Journal.
In April 2014, Aneurin Bevan, Abertawe Bro Morgannwg, Cardiff & Vale and Cwm Taf health boards paid 94% above published market prices for cucumbers.
The Auditor General has now confirmed:
· There were ‘shortcomings in the awarding of the 2010 Welsh Health Supplies contract’
· Pricing concerns were flagged up but ‘not addressed’
· Overcharging was caused by a failure to monitor prices and ‘a lack of understanding of pricing methodology’
· ‘Formal capability or disciplinary action’ against staff is being considered
· Agreement for repayment has been agreed with four of the five affected suppliers but figures cannot be disclosed due to ongoing negotiations with the fifth supplier
Labour have run the Welsh NHS for 17 years and since 2010 have underfunded the health services in Wales by £1billion.
Darren Millar AM, Shadow Health Minister, said, “This is evidence that the Welsh NHS has been ripped off for years, with patients and staff paying the price for incompetence and a lack of financial management.
“We don’t know how many millions of pounds the Welsh NHS has lost in this scandal or how much can be recovered, but this is money our our health service can ill afford to lose – particularly over a period when Labour have been underfunding it to the tune of £1 billlion since 2010.
“This rip-off raises serious questions about public procurement in the Welsh NHS and about the competence of Labour Ministers’ oversight of taxpayers’ money.
“We need clarity on the scale of overcharging for fruit and veg in Welsh hospitals and measures put in place to learn lessons.
“And we need an apology to patients from the Welsh Labour Ministers on whose watch this mess has occurred.”