Unibank Shoots Itself in The Foot
Even as the management of Unibank struggled to explain and justify why Korle-Bu Teaching Hospital is not treating them fairly over its decision to cancel revenue collection contract, their rejoinder to clarify the issues has actually exposed them more. Unibank’s rejoinder provided detailed information on how the bank has been involved in all processes leading to decision to award the Korle-Bu Hospital Management Information System to Stanbic Bank. The current CEO, Dr Felix Anyaa, was not at post at the time the decision to award Hospital management information System to Stanbic Bank was taken. He took over in June 2017 and the process to have HMIS in KBTH started in 2016 and concluded in May,2017.
Below is analysis of the unibank statement:
- 6th paragraph of uniBank’s rejoinder reads;
“In April, 2017, Management of uniBank was surprised to learn that unknown to uniBank, Korle-Bu Teaching Hospital [KBTH] had invited Stanbic to do a presentation on HMIS (Hospital Management Information System), following which the Polyclinic, which had already been assigned to uniBank for revenue collection services, had been assigned to Stanbic to install the Hospital Management Information System[HMIS] software, on a pilot basis, without officially notifying uniBank in writing.”
- Management of KBTH had approved Stanbic Bank to install and pilot HMIS in April 2017.
- In April 2017, Dr. Felix Anyah had not been appointed CEO. The decision to let Stanbic pilot its HMIS therefore predated the new CEO who started work in June 2017.
- Paragraph 8 of uniBank’s rejoinder reads;
“As a result of our protest to KBTH regarding uniBank’s exclusion from the bidding to offer HMIS, uniBank was subsequently invited by KBTH in an email dated 4th May, 2017 in which KBTH indicated that if uniBank was successful after the presentation, it would be assigned Obstetrics and Gynaecology Department where the HMIS could be piloted. KBTH also indicated that both uniBank and Stanbic would run their pilots concurrently for some time after which KBTH will decide on the best software to be adopted and make payment to the concerned bank and acquire the software. It is therefore not accurate as indicated in the KBTH Press Release that uniBank was invited twice in 2015 to do a presentation.”
- As at May 2017, UniBank was aware that Management of KBTH had accepted Stanbic Bank’s HMIS Software.
- Management of KBTH’s approval of Stanbic Bank’s HMIS again in May 2017 predates Dr. Felix Anyah who started work in June 2017.
- uniBank accepts they were invited to present HMIS on 4th May, 2017.
- In paragraph 6, uniBank states;
“It is therefore totally false for KBTH to state that they invited uniBank to do a presentation on “End-to-End Hospital Revenue Collection Software in 2015”, and we challenge the Management of KBTH to make a copy of the said letter available to the general public.”
- Aside the typographical error, 2015 instead of 2017, uniBank admits they were invited to make a presentation on 4th May, 2017.
- uniBank failed to make a presentation.
- By another email with the subject “INVITATION TO DEMO PRESENATION OF UNIBANK HMIS”, dated 11th May, 2017 was sent from KBTH’s Director of Finance – Mr. Bright Korkoryie, to Elfreda Quartey and Gifty Alimah Blay of uniBank.
- On two (2) consecutive occasions; 4th May, 2017 and 11th May, 2017, KBTH invited uniBank to do a presentation on HMIS but uniBank never showed up!
- As requested by uniBank, in paragraph 6 of their rejoinder, the letter that invited uniBank to present its HMIS is available to the general public.
- Paragraph 7 of uniBank’s rejoinder reads;
“Following this development, uniBank met with the Management of KBTH and enquired about the purported assignment of the Polyclinic to Stanbic to commence piloting Hospital Management Information System[HMIS], and registered its displeasure at this treatment. It was at this meeting that KBTH confirmed that indeed they invited Stanbic to do a presentation of HMIS based on which they had given Stanbic the go ahead to pilot at the Polyclinic. KBTH also indicated that they did not invite uniBank because they were not aware that uniBank could assist them with the software since uniBank did not present an HMIS during the initial bidding but only presented a billing and collection software.”
- uniBank knows Stanbic Bank HMIS was accepted for implementation before Felix Anyah started work in June 2017.
- uniBank did not present HMIS at the initial bidding.
- Stanbic Bank presented HMIS at the bidding. This explains why Stanbic was first (1st) on all the criteria for HMIS software that KBTH was seeking as compared to uniBank that appeared not to understand the criteria listed by ten (10) panellists. It was based on this criteria that the following results emerged;
Stanbic Bank 59.4
GT Bank 58.7
- Paragraph 5 of uniBank’s rejoinder reads;
“On 3rd October, 2016, an internal assessment by KBTH of the workings of the bank’s billing and collection system indicated that the uniBank system was working perfectly well, based on which a recommendation was made to the CEO to sign an MOU with uniBank. In deed in our quest to ensure a superior service offering to KBTH, uniBank invested an amount in excess GHC 1.5 million to lay fibre optic cables, supply PCs to be used by KBTH billing staff and erected/ refurbished cubicles at the various collection points assigned uniBank.”
- KBTH’s revenue collected by uniBank is used for uniBank’s business and profit.
- The MoU between KBTH and uniBank did not request uniBank to lay fibre optics.
- Whatever investment uniBank made, was in consideration of the profit they will get from the revenue which they lend to their customers.
- All banks since 2008 – Merchant Bank, HFC Bank, Stanbic Bank – built an infrastructure which belong to them and they take away at the expiry of contract.
- The MoU between KBTH and uniBank (and all other banks) did not state that if the Bank invests a certain amount of money to set up in KBTH and make profit out of the collection of KBTH’s revenue, the MoU cannot be terminated.
- In Paragraph 12, uniBank states;
“So far, KBTH has not presented any evidence to show that uniBank had committed any wrong-doing or committed any breach in the performance of its obligations under the MOU.”
The MoU between KBTH and uniBank did not state that any wrong doing, any breach, or any REASON must be stated for the agreement to be terminated.
- In Paragraph 12, uniBank states;
“All uniBank sought to do was to be given a fair and transparent opportunity in the bidding process for the provision of on-site banking services at KBTH.”
- KBTH interviewed 5 banks with clearly stated CRITERIA or SCOPE OF PRESENTATION. This was scored by 10 panellists. The results were:
Stanbic Bank 59.4
GT Bank 58.7
- uniBank made no protest.
- The mandate at the bidding process was to select ONE BANK.
- uniBank that was 4th was added after another criterion was added and the 4 other banks were not allowed to participate.
- The criterion was CORPORATE SOCIAL RESPONSIBILITY.
- This second stage was fair to uniBank but not fair to the 4 other banks.
- uniBank alone was given a third chance on 4th May 2017 but did not make any presentation.
- Again on 11th May, 2017, uniBank alone was requested to do an HMIS presentation but could not!
- In Paragraph 13, uniBank states;
“As a responsible corporate citizen, uniBank has, since its inception, provided numerous corporate social responsibility services to corporate entities and individuals, including the refurbishment of the Maternity Block of the Korle Bu Teaching Hospital at a cost in excess of GHC 2.0 million in 2014. As a wholly-owned Ghanaian Bank, these social intervention programmes by uniBank are borne out of our desire to support Ghanaians and Ghanaian institutions.”
- What is Corporate Social Responsibility?
- Do you have control over any institution because of Corporate Social Responsibility?
- Is uniBank the only Bank that undertakes Corporate Social Responsibility?
- Was Corporate Social Responsibility the Criterion for the bidding or a criterion not to terminate the contract?
- uniBank was added to Stanbic Bank because of Corporate Social Responsibility and not efficiency – is it the way forward for good governance?
Under Act 525 – Ghana Health Service and Teaching Hospital Act 1996, Section 47,48; The House Committee of a Teaching Hospital made up of Specified Directors, Representatives of Clinical Staff and workers union assist the CEO of the Hospital in the performance of his functions.
In IMPLEMENTING a decision by Management in April 2017 to employ Stanbic Bank HMIS, the CEO and members of the House Committee went to the Vice President on 28th June 2017 and 6th July 2017 to discuss all issues to implement the management decision. This is contained in CID report. The Team received a green light from the Vice Presidency to use Stanbic Bank before the Termination of MoU by KBTH. KBTH was not required under the MoU to give reasons for the Termination since either party can terminate the MoU giving 90 days’ notice.
Source: Yaw Obeng Manu