Auditor General Faulted for Adding Zero in Probe

Auditor General Nancy Gathungu
Auditor General Nancy Gathungu at a public event in Nairobi in 2019
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The Auditor-General is on the spot for errors found in a special audit report probing loss of funds in the Ksh7.8 billion Kenya Medical Supplies Authority (KEMSA) probe.

The report showed errors in the amount of cash paid to two companies that are involved in the scandal.

An earlier audit by the Auditor-General had indicated that the two companies, Nanopay and Shop N Buy, received Ksh340 million and Ksh970 million respectively.

Auditor General Nancy Gathungu.
Auditor General Nancy Gathungu.
File

The AG now claims that Nanopay received only Ksh34 million. The auditors did not provide details regarding the error of payments made to Shop N Buy.

Appearing before the National Assembly's Public Investments Committee, the auditors failed to explain the error.

This raised suspicion among the MPs who questioned the authenticity of the claims.

"How is this a typing error? How can the one zero be missing? These reports are done by qualified officers and they are checked and counter checked before presentation for signing.

"We can't buy an error occurring from the auditors, this is suspicious," Likoni MP Mishi Mboko said.

PIC chairman Abdulswamad Nassir directed the auditors to give a documented report on how the errors occurred. He added that the committee would further interrogate the companies on the reported errors.

The committee also received a report from the Kenya Revenue Authority (KRA) that showed only 13 out of 102 firms, involved in the scandal were tax compliant. According to the Authority, the 13 companies applied for the Import Declaration Form (IDF), a mandatory requirement for all importers.

The Ksh7.8 billion KEMSA probe rocked the country after an expose by NTV dubbed Covid-19 millionaires shed light on the fraudulent dealings within the agency. 

Senior KEMSA officials and Ministry of Health officials have appeared before the Senate and Parliamentary assemblies to explain the dealings.

The Kenya Medical Supplies Agencies headquarters in Industrial Area Nairobi.
The Kenya Medical Supplies Agencies headquarters in Industrial Area Nairobi.
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