• Legislators recommend the blacklisting of companies linked to the disputed procurement.
• They also want the State Corporations Advisory Committee to review the structure and organisation of Kemsa.
Image: EZEKIEL AMING'A
Health Principal Secretary Susan Mochache is among top government officials that Parliament wants investigated over the Kemsa scandal by the anti-graft agencies.
The National Assembly Health committee also wants top Kemsa officials investigated and recommends the disbandment of the authority’s board.
“The Director of Criminal Investigations and the Ethics and Anti-Corruption Commission undertake investigations on the role of the Principal Secretary, Ministry of Health, on disputed procurement processes at the Kenya Medical Supplies Authority and take appropriate legal action where necessary,” the Health committee recommends in a report tabled on Thursday.
Kemsa chief executive Jonah Manjari had told the committee that he received a request from the PS to procure Covid-19-related items from certain suppliers.
The report adversely mentioned not only the suspended Manjari, procurement director Charles Juma, commercial services director Eliud Mureithi as well as Kemsa’s head of finance. Juma and Mureithi have also been suspended.
The committee, which is chaired by Murang’a Woman Representative Sabina Chege, says the officers violated procurement laws in the purchase of face masks, personal protection equipment and other supplies.
The report came barely a day after Auditor General Nancy Gathungu disclosed that Sh2.3 billion may have been squandered in the flawed Kemsa purchases.
The MPs want Manjari pursued on charges of irregular and unauthorised expenditure funds contrary to the Public Finance Management Act, 2012.
The suspended CEO could also be in trouble for undertaking procurement beyond the approved budget contrary to procurement law.
The House team further wants him pursued for undertaking procurement without an approved procurement plan.
The legislators want Juma probed for failure to discharge his functions in the procurement process. They say his action or lack of it led to the irregular and unauthorised expenditure of Kemsa funds through procurement of Covid-19 supplies.
Mureithi could be in trouble for failing to advise on the undertaking of market survey, thus exposing the agency to Sh2.1 billion loss.
MPs have further recommended that the Kemsa board be reconstituted in 30 days of tabling the report.
The top management body is accused of failure to effectively discharge its function as enumerated in the Kenya Medical Supplies Authority Act, 2013.
“Thereafter, the DCI and EACC undertake investigations on members of the board,” the committee has recommended.
The State Corporations Advisory Committee was asked to review the structure and organisation of Kemsa.
The EACC and DCI were further directed to investigate any irregularities on all the 83 companies linked to the disputed procurement.
“Upon conclusion of relevant investigations, any company involved in the disputed Covid-19 procurement and found to have contravened the Public Procurement and Asset Disposal Act, 2015 and engaged in other malpractices be blacklisted and barred from doing business with any government entity,” the committee said.
The team further wants the Kenya Revenue Authority to, within 60 days, audit the companies awarded tenders by Kemsa to ascertain their tax compliance status and “take appropriate action in instances of non-compliance”.
The committee also want Kemsa excused from following due procedures in the disposal of the Sh6.2 billion stock the agency is stuck with.
“However, no payments should be made for goods irregularly procured and recovery of assets undertaken as per relevant laws for irregular payments,” the committee said.
The members asked Health Cabinet Secretary Mutahi Kagwe to, within 60 days, establish a policy to utilise the stock delivered to Kemsa with minimal loss to the country.
- mwaniki fm