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"id": 1016170,
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"speaker_name": "Sen. Dullo",
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"legal_name": "Dullo Fatuma Adan",
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"content": "document and all that. However, at the end, they said that they do not have the power of attorney, and they ended up signing the contract. The Committee, therefore, recommended that the circumstances under which the tender was awarded to GE East Africa is in contravention of The Public Procurement and Assets Disposal Act and the requirement in the tender document be investigated. Mr. Speaker, Sir, as for the financial advisors, the Ministry of Health retained the services of PKF and SPA, who developed the public sector comparator that formed the basis for the awarding of contracts under MES. Further, the Committee noted that PKF submitted the value for money assessment in a record three days and were paid Kshs1.108 million for an assignment that required them to visit counties. It is clear that there were no county visits that were conducted by these companies to inform the public sector comparator because the report was ready and submitted within three days of signing the contract, where they were clearly paid three days after they submitted the report. Mr. Speaker Sir, the Committee also established some irregularities in the procurement of the contractors, for instance, an unauthorized person who signed contracts in several instances without the power of attorney. Clearly, the Committee recommends that the Ethics and Anti-Corruption Commission (EACC) should commence investigations into the process of procurement and award of contracts under the MES project, with a view to taking action against the officers found culpable. Mr. Speaker, Sir, in respect to the viability and benefit of leasing versus outright purchase, the Committee established that the MES project was carried out using a Managed Equipment Service model and not leasing, as was originally envisaged. The Committee established that the MES is a flexible and specialized partnership with a private sector service provider, to provide access to innovative medical technology and equipment in order to ensure the effective and efficient delivery of health services. All equipment concerns throughout the entire contract lifetime, including ownership, provision, purchase, installation and commissioning, user training and asset management, maintenance and ongoing replacement. The Committee also established that most equipment supplied under the MES project did not require frequent changes in technology, while all these were captured within the contract at the beginning. As such, there was no value for money by acquiring the equipment through the MES project. Instead, value for money could have been attained through outright purchase of that equipment. Accordingly, in order to conclusively determine the viability and benefit of leasing versus outright purchase, the Committee has recommended that the Office of the Auditor-General undertakes an urgent audit of the entire project, including the manner in which the funds paid so far by the county governments have been used, the state of the equipment and the extent to which the project has met its objectives and make appropriate recommendations to the Senate on its viability and the best way forward. This audit should be undertaken immediately and a report submitted to the Senate within six months from the date of tabling this Report. Mr. Speaker, Sir, in respect to the cost of the equipment supplied to each hospital, including proof that the monies disbursed were utilized for the intended purpose, the The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}