FACING SUMMONSES

Senators probe Sh7.7 billion Covid funds usage by counties after audit report

Report indicts that devolved units violated procurement laws.

In Summary

• In the report, Gathungu cited several violations and recommended to the DCI and EACC to probe at least 27 counties.

• They include Embu, Homa Bay, Murang'a, Busia, Kakamega, Meru, Bomet, Kisii, Bungoma, Nairobi (Nairobi Metropolitan Service), Trans Nzoia and Lamu.

The consignment of drugs when they arrived in Lamu on Wednesday.
The consignment of drugs when they arrived in Lamu on Wednesday.
Image: CHETI PRAXIDES

A Parliamentary Committee is investigating alleged misappropriation of Sh7.7 billion meant to fight the Covid-19 pandemic by the 47 County Governments.

This after an audit report by Auditor General Nancy Gathungu on the utilisation of the Covid-19 funds revealed massive violations of procurement laws among other vices in the use of the funds.

The distortions were widespread across all the 47 devolved units, smelling of loss of hard-earned taxpayers’ money.

Senate Health Committee disclosed that it is probing how the counties spent the monies, bulk of it donations from the national government and other donors, as they battled the contagion.

Chairman Michael Mbito divulged in a report to the House that his panel has summoned several governors to explain the illegalities and irregularities flagged by the auditor in her report.

“I wish to inform the House that the committee is seized of the special audit report of the auditor general on the utilisation of Covid 19 funds by the county governments and is set to commence hearings with various county government,” Mbito said.

In the report, Gathungu cited several violations and recommended to the DCI and EACC to probe at least 27 counties.

They include Embu, Homa Bay, Murang'a, Busia, Kakamega, Meru, Bomet, Kisii, Bungoma, Nairobi (Nairobi Metropolitan Service), Trans Nzoia and Lamu.

The report reveals that the counties flaunted procurement laws, awarded tenders to select firms and made questionable payment where billions of taxpayer's money may have been lost.

In addition, the devolved units did not put in place approved work plans, procurement policies, conduct training schedules specific to covid-19 activities or conduct market surveys prior to procurements.

“In this regard , it is recommended that  the Ethics and Anti-corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) conduct further  investigations to establish acts of criminality in inventory management of the covid-19 related items,” the report reads in part.

The report says that some 12 counties did not employ competitive bidding, four dished out tenders to non-prequalified bidders and six did procurement without carrying any market survey.

Further, two counties misappropriated the Kenya Devolution Support Project (KSDP) funds, three irregularly split procurement contracts contrary to section 54 (1) of the PPADA act 2015 and four procured goods without valid contracts.

The county governments received the Covid-19 related funding amounting to Sh7.7 billion comprising the conditional grants Sh5 billion allowances for the frontline Health workers Sh2.6 billion and grants from DANIDA of Sh350 million.

In addition, counties also allocated own source budgets and some of them received funding from other donors such as through the Kenya Devolution Support Project (KSDP) financed by the World Bank

Gathungu has fingered Baringo, Bomet, Bungoma, Elgeyo Marakwet, Homa ay, Kilifi, Kirinyaga, Kitui, Laikipia, Migori, Nandi, Samburu, Wajir and West Pokot as most notorious in breaking procurement laws.

The report details that devolved units used the Covid-19 pandemic that struck the country on March 13, 2020 as a perfect cover to break procurement laws and legal provisions in their overdrive procurement for Covid 19 items.

This is despite an earlier warning by EACC boss Twalib Mbarak that money being allocated to fight the coronavirus pandemic should not be   misused for selfish gain.

“County governments procured Covid 19 items from non-prequalified bidders without justification. Section 106 (2) (a) of the public procurement and asset disposal act, 2015 requires accounting officers to issue quotations to persons who are prequalified,” the report reads in part.

WATCH: The latest videos from the Star