Health Principal Secretary Susan Mochahe on Thursday, July 8 confirmed the Ethics and Anti-Corruption Commission (EACC) cleared Kenya Medical Supply Authority(KEMSA) to auction coronavirus protection kits purchased at inflated prices.
PS Mochache stated the sale clearance that is going to see taxpayers lose Ksh2.3 billion had already been sent to the Cabinet for approval.
KEMSA purchased the protective equipment at Ksh6.3 billion in a procurement the EACC viewed as irregular and recommended legal action against some top officials.
Audit findings indicate that KEMSA will lose Ksh2.33 billion if the kits currently stuck at the warehouse are sold at the current prices.
“The ministry resubmitted the memo on July 6, 2021, communicating the clearance of the EACC and sought approval for disposal of the commodities which the country needs at this time when there is a surge which is expected to culminate into a fourth wave.
“The matter is under consideration and discussion is to be made by the Cabinet,” Mochache stated while appearing before the National Assembly Public Investment Committee (PIC)
Various instances of inflated prices of the products were realized by the Public Procurement Regulatory Authority (PPRA)
“There was no evidence of indicative price indices obtained through market survey,” PPRA noted.
The PPRA also raised the issue that the tenders were retrospectively negotiated and evaluated after the deliveries and some of the prices were not as proposed.
The audit also revealed that KEMSA officials also rejected discount deals offered by some potential suppliers.
A forensic audit by the Auditor-General revealed that KEMSA officials paid for a pack of 50 face masks at higher prices than quoted by the supplier.
Currently, over 95 percent of the pandemic-related items have been in the KEMSA warehouse for more than a year.
