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{
    "id": 1124735,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1124735/?format=api",
    "text_counter": 285,
    "type": "speech",
    "speaker_name": "Sen. (Dr.) Mbito",
    "speaker_title": "",
    "speaker": {
        "id": 13225,
        "legal_name": "Michael Maling'a Mbito",
        "slug": "michael-malinga-mbito"
    },
    "content": "Mr. Temporary Speaker, Sir, I beg to move the following Motion- THAT, the Senate adopts the Report of the Standing Committee on Health on inquiry into allegations regarding irregularities in the procurement of various pharmaceutical equipment and products by the Kenya Medical Supplies Authority (KEMSA), laid on the Table of the Senate on Tuesday, 30th March, 2021. Mr. Temporary Speaker, Sir, the Standing Committee on Health was informed about various allegations of procurement irregularities in KEMSA involving several companies in the Financial Year 2017/2018 and 2019/2020. The Committee noted various concerns raised by county governments and health workers union regarding the quality and cost of goods supplied by KEMSA in relation to Covid-19 pandemic particularly Personal Protective Equipment (PPEs). The Committee, therefore, resolved to inquire into the allegations of the procurement irregularities in KEMSA involving several companies. Mr. Temporary Speaker, Sir, as a summary, the main red flags that necessitated our inquiry included- (1) The utilization of Universal Healthcare Coverage (UHC) and KEMSA capital budget to fund Covid-19 related procurement without authority. (2) The irregular use of retrospective direct procurement method; (3) Commencing of Covid-19 related procurement processes without an approved budget. (4) Failure to integrate the Covid-19 related procurement plan into the budget process. (5) Inefficient management of stock in KEMSA where it was exposed to value for money risk. (6) Awarding of tenders to companies that had been in existence for less than a year. We interviewed many stakeholders and relied on the audit report of the Auditor- General on the utilization of Covid-19 funds by KEMSA for the period 13th March to 31st July, 2020. It was established that the management of KEMSA violated the Public Procurement and Disposal Act, 2015 in all material aspects. The budgetary management for capital budget did not comply with the Public Finance Management Act, 2012. Given the inefficiency in the procurement process, and the fact that 97 per cent of supply is still lying in KEMSA warehouses at the time of audit, there was no value for money realized. So, the Committee made several observations and at the end of it all, it made a raft of recommendations among which- (1) The Office of the Director of Public Prosecution (DPP) and the Directorate of Criminal Investigation (DCI) investigates the Chief Executive Officer (CEO) and board of management of KEMSA for contravening the provisions of the law. We listed the officers whom we were interested in. They included the CEO and chief officers."
}