WRANGLES CONTINUE

Nairobi Hospital chiefs deny shareholders audit report

The board claimed releasing the reports would breach doctor-patient confidentiality.

In Summary

• The board said it would be "extremely prejudicial" for them to release the audit for scrutiny by owners. 

• KHA member Robert Shaw has written to the Ethics and Anti-corruption Commission to force the board to release the three audits. 

Nairobi Hospital
ON THE SPOT: Nairobi Hospital
Image: FILE

The embattled Nairobi Hospital board has refused to release the latest audit reports to shareholders ahead of its annual general meeting next week.

The board claimed releasing the reports would breach doctor-patient confidentiality.

The audits are believed to have questioned various ongoing infrastructure projects in the hospital.

Shareholders had requested the audits be released ahead of the AGM on June 17.

The board, led by lawyer John Simba, also said it would be “extremely prejudicial” for them to release the audit for scrutiny by owners. 

“It will significantly undermine the board’s adequate and judicious consideration of the audit report given that no final decision has been taken on some of the recommendations as the report is under active consideration,” P. M. Gichuhi of Kaplan Stratton Advocates said on behalf of the board. 

The board also fears the reports would become public. 

Nairobi Hospital operates as Kenya Hospital Association and is a company limited by guarantee.

The June 17 AGM comes after the May 15 Extraordinary General Meeting that routed the Simba-led board.

The decision was suspended by the High Court following an appeal.

KHA member Robert Shaw has now written to the Ethics and Anti-corruption Commission to force the board to release the three audits. 

Shaw says KHA members have a right to scrutinise the audits and other financials before the Monday AGM. 

He says the board has been unable to pay doctors more than Sh200 million it owes them for their services.

He also questions the wisdom behind the construction of the Anderson complex, a project whose cost ballooned from Sh3 billion to Sh4.5 billion.

“As stakeholders, an increasing number of members of Nairobi Hospital would wish to know the contents of this audit as they are very concerned at the sorry state of the hospital, which requires remedial action as soon as possible,” he says in a letter to EACC boss Twalib Mbarak.

“I believe the contents of this audit would be of significant interest to the EACC and it's definitely within the domain of its mandate,” Shaw says. 

In the May 15 EGM, those removed were replaced with nine members including lawyer Richard Omwela, Zahra Moi, architect Otieno Odongo, former MP Chris Bichage and the chief executive of CBA Bank- Kenya Jeremy Ngunze.

About 96 KHA members voted unanimously for the board changes, with their lawyers saying the voting was in line with the Articles of Association.

However, the incumbent board moved to the High Court, which stopped the new board from taking office.

The court will rule on the matter on Thursday.