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{
    "id": 1016167,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1016167/?format=api",
    "text_counter": 194,
    "type": "speech",
    "speaker_name": "Sen. Dullo",
    "speaker_title": "",
    "speaker": {
        "id": 13125,
        "legal_name": "Dullo Fatuma Adan",
        "slug": "dullo-fatuma-adan"
    },
    "content": "The Committee, while undertaking its enquiry, established that the supply of medical equipment to Level 4 and Level 5 facilities in the counties was initially conceptualised as Public-Private Partnership (PPP). The total cost of the project, including infrastructural support, was to be Kshs4.3 billion, then per year, over a period of 10 years. Out of Kshs4.3 billion, the national Government through the Ministry of Health, was to pay Kshs1 billion. The national Government, through the National Treasury viability gap finding, was to pay Kshs2 billion, while the county governments were to pay Kshs1.5 billion, translating to roughly Kshs31 million per county. Those were the laid out figures if the project was to be a PPP. By a letter dated 22nd June, 2015, the Ministry of Health informed the National Treasury that the Ministry of Health was proceeding to drop the PPP and opt for MES Project to be procured under the public procurement laws, which according to the investigation and the finding of the Committee, shows that there was no clear explanation how the Ministry moved from PPP to public procurement laws. There was no policy document or public participation that informed this conversion. Accordingly, the Committee concluded that this conversion was not in the public interest because whereas under PPP the total cost of the infrastructure support was Kshs4.3 billion per year over a period of 10 years and counties would have paid Kshs31 million for seven years, the conversion resulted in counties paying Kshs95 million per county per year in the FY 2014/2015 to FY 2017/2018, Kshs200 million in the FY 2018/2019 and Kshs131,914,894 for the FY 2019/2020 for the project that runs for seven years. In the circumstances, the Committee concluded that there was no value for money and, therefore, recommends that the circumstances for the changes be investigated and any person found culpable prosecuted. Where it is established that the Government suffered financial loss, the National Treasury should commence recovery proceedings and damages against culpable officers for the loss suffered, as provided for under Section 232 of the PFM Act."
}