Ministry of Health officials asked to take responsibility for loss of Sh5bn

Wilfred Machage, the chairperson of Senate's committee on health, issues a statement in Nairobi on October 27, 2016 after Health Cabinet Secretary Cleopa Mailu and Principal Secretary Nicholas Muraguri failed to appear before the group. PHOTO | JEFF ANGOTE | NATION MEDIA GROUP

What you need to know:

  • The Senate Health Committee, which is chaired by Dr Wilfred Machage, said Health Cabinet Secretary Cleopa Mailu and Principal Secretary Nicholas Muraguri must appear before it to explain how the billions of shillings were paid irregularly to ghost companies and individuals. The money was paid through manipulation of the Integrated Financial Management Information System.

  • Some of it is suspected to have been lost through double payments while some was paid without proper documentation.

Top Ministry of Health officials were on Thursday asked to take responsibility over the loss of Sh5 billion, part of which was meant to fund free maternity services in public hospitals.

The Senate Health Committee, which is chaired by Dr Wilfred Machage, said Health Cabinet Secretary Cleopa Mailu and Principal Secretary Nicholas Muraguri must appear before it to explain how the billions of shillings were paid irregularly to ghost companies and individuals. The money was paid through manipulation of the Integrated Financial Management Information System (Ifmis). Some of it is suspected to have been lost through double payments while some was paid without proper documentation.

Dr Mailu and Dr Muraguri, who had been summoned to appear before the Senate committee on Thursday, did not turn up, saying they had been given short notice. They requested to be given until Tuesday.

The two, who were summoned on Wednesday night, said they were still interrogating the allegations based on an internal audit report prepared for the Auditor-General but which was leaked to the media.

Dr Machage said the public deserves to know the truth on the suspect deals that he likened to the NYS scandal.

“Embezzlement of public funds seems to be gaining popularity. This committee will not sit down and condone silence on this matter,” he said. Other committee members present were Senate Deputy Minority Leader Abdirahman Hassan (Wajir), senators Wilfred Lesan (Bomet), Zipporah Kittony (nominated) and Godliver Omondi (nominated).

EXPRESSED OUTRAGE

The lawmakers expressed outrage at increasing levels of corruption in the country.

Ms Kittony and Mr Hassan said public officials who fail to account for the loss of public funds would be shown the door.

“Kenyans are tired and I am sure even the President is tired. The officers should come out clean and if they don’t, they should go home,” said Ms Kittony.

Mr Hassan said it was time those adversely mentioned in corruption stepped aside to pave way for independent investigations.

“This business of saying we wait for investigations is not right. People must take political responsibility,” he said.

The lawmakers said the Executive should firmly deal with the worrying levels of corruption that have become a threat to the economy.

“Scandals are becoming too many in this country. It is not a matter we can take while lying down. Truth must be told about this scandal,” Mr Hassan said.

On Thursday, officials said the ministry would on Friday give an update on the investigations into the loss of money meant to boost delivery of health services, including in hospitals managed by counties.

The ongoing audit at Afya House has raised questions over the integrity of top ministry officials and how they lost taxpayers money through unauthorised payments, overspending, double payments and diversion of funds.

INTERNAL AUDITORS

Suspicions by internal auditors that the money could have been stolen or paid to fictitious companies has also brought to the fore the fidelity of Ifmis, which was designed to curb such theft.

Corruption allegations have plagued the ministry, beginning in March this year when the Ethics and Anti-Corruption Commission (EACC) ranked it as second in graft after the Ministry of the Interior and Coordination of the National Government. The March report revealed that Kenyans were paying up to Sh1,800 in bribes to “seek medical attention” in public hospitals.

In April, yet another report showed that taxpayers were paying between 30 to 300 per cent more for drugs and medical equipment because of procurement inconsistencies. It said taxpayers were spending nearly Sh1.1 billion more annually for drugs and medical equipment, largely due to graft.

“For every procurement based on the Market Price Index (which gives guidelines for goods for education, agriculture, health and infrastructure for government procurement), the Government of Kenya pays more than 11.8 times the international price for medicines and equipment,” revealed the report.

SOME DIRECTORS

In May, some directors of the National Quality Control Lab, tasked to test locally manufactured and imported drugs or medicinal substances and devices, intercepted an elaborate plan to steal nearly Sh18.2 million in forged vouchers. The deal, hatched by procurement officers in the Ministry of Health and those in the lab, was meant to pay for “stationery, chemicals and reagents” which had neither been requested for nor delivered.

Only recently, the ministry said it was “working on modalities” to refund about Sh160 million to the Global Alliance for Vaccines and Immunisations (GAVI), an entity that supplies vaccines globally. The money was part of Sh990.3 billion (USD9.9 million) given by GAVI in 2007 for the 2008-2012 period.

Dr Mailu said an audit had revealed there was lack of adequate documentation to support expenditure of the Sh160 million. The ministry said the unaccounted for money was for motorbikes, bicycles and cash sent to support “the districts then”.

On Thursday, Dr Machage said it is unfortunate that the auditor general’s reports are usually released late, making it difficult to deal with those who misappropriate public funds.

Separately, an Ethics and Anti-Corruption Commission official said a team of detectives has been camping at the ministry’s offices since the story broke. “They have collected every data and are combing through every little movement of money,” he said.