MPs to probe Covid spending by Treasury, MoH

The Public Accounts Committee of the National Assembly will probe government officials for irregular spending of Covid-19 emergency cash.

The committee wants answers from government agencies to the queries flagged by Auditor General Nancy Gathungu on how the money was used.

PAC has invited the National Treasury to appear before it on Wednesday, January 26.

PAC chairman Opiyo Wandayi told the Star on Sunday the committee will trace the movement of the monies from donors to the National Treasury.

The Ugunja MP said the probe would also review how the donor cash, local and international, was spent at the Ministry of Health and in the counties.

“The greater focus will be on the procurement processes for various commodities and services. The ultimate goal is to establish if the public got value for its money,” Wandayi said.

“We shall, in the usual manner, conduct the inquiry with utmost diligence and without fear or favour. 

“We shall hold every concerned public officer to full account for any act of commission and/or omission.” 

The probe will focus on how Kenya spent the Sh214 billion borrowed in 2020, largely for the Covid-19 response.

In her report subject of the review, Gathungu cited inconsistencies in the dates of procurement of goods and services.

The probe will examine why the Covid-19 Emergency Response Fund board chaired by EABL boss Jane Karuku irregularly opened a bank account at Absa Bank.

The committee will also investigate irregularities in the disbursement of Sh400 million in cash transfers to vulnerable households.

PAC wants to know why Covid-19 fund accounts were not centrally managed as required by the law and regulations on public finance management.

“Some accounts were being managed by the National Treasury while the Absa Bank account was being managed by an appointed board without an administrator,” the Auditor-General said.

“Though the decision to open the bank account was approved by the fund board, there was no evidence of approval by the National Treasury Cabinet Secretary," the special audit report said.

On the Sh400 million cash transfer, PAC plans to unearth the beneficiaries of 38 payments made to the same M-Pesa telephone number, but with different names.

Similarly, 7,850 beneficiaries who shared names but had different M-pesa telephone lines. They were paid Sh32,626,000.

The ID numbers of the recipients were not provided for audit and analysis, hence, the audit was not able to independently verify the recipients were genuine.

MPs will also probe how the Sh17 billion allocated to the Health ministry for Covid-19 response were spent.

The focus here is allocation of Sh4.6 billion to various referral hospitals, Sh2.2 billion to Kemsa, Sh7.7 billion to county governments, Sh700 million for quarantine facilities, Sh109 million to Gradian Health Systems — all were queried by the auditor.

The committee will investigate the expenditure of Sh6.5 million on stationery, whose eligibility for funding was flagged.

Gathungu also highlighted a Sh14 million fuel supply contract that was awarded to Ramji Haribhail Devani Ltd. She said it was impossible to trace whether the fuel was used for official assignments.

The auditor also cited unsupported airtime expenditure of Sh2.1 million as well as conflicting documentation on notification of award of Sh5.3 million to a hotel for the accommodation of health officials.

On the Covid-19 Emergency Response Fund Board, Gathungu said it was hard to tell why the entity established by statutes was registered as a company.

“This significantly affected the application of the government’s financial and procurement laws and regulations in the management of public funds,” the report read.

Catering services for the Health ministry totalling Sh1.5 million during the pandemic will also be investigated by the PAC.

“It was also not possible to ascertain how the suppliers were evaluated for the service since procurement documents were not provided and no explanation was given.”

Queries on the expenditure of Sh3 million on airtime scratch cards will also feature in the PAC investigations.

“The audit could not confirm how a balance of airtime worth Sh2,131,000 was issued and to which beneficiaries since there was no evidence of recipients acknowledging receipt,” the audit report read.