MPs question credibility of MTRH inventory after audit reveals Sh4.5m in expired drugs
The hospital's CEO Dr Philip Kirwa faced questions over how the expired medicine was included in the Sh356 million stock balance reported in MTRH’s June 2020 accounts.
A parliamentary watchdog committee has questioned the credibility of inventory records at Moi Teaching and Referral Hospital (MTRH) after an audit revealed that expired drugs worth Sh4.5 million were included in its financial statements.
During a meeting with the National Assembly's Public Investments Committee on Social Services, Administration and Agriculture, the hospital's CEO, Dr Philip Kirwa, faced questions over how the expired medicine was included in the Sh356 million stock balance reported in MTRH’s June 2020 accounts.
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The Auditor-General also found that some stocktake reports used to support the inventory figures were unsigned.
“The accuracy of the inventory balance could not be confirmed,” read the audit report.
In defence, MTRH said the drugs flagged had not yet expired at the time of the stocktake, and the unsigned report from Nyayo Pharmacy was due to an oversight. We have implemented stricter procedures to ensure full documentation in future stocktakes,” Kirwa said.
But MPs on the committee were not convinced. Vice-Chairperson Caleb Amisi criticised the handling of the matter, raising doubts about the hospital’s internal checks.
“There’s something wrong, whether it’s people who were there before. Why don’t we call those who were responsible? This is pure theft,” he said.
MP Jackson Kosgei said the explanations from MTRH showed a casual approach to serious financial accountability matters.
“The way these responses have been presented is too casual for such serious matters,” he said.
Committee chairperson Emmanuel Wangwe advised the hospital to reconvene with officials from the Auditor-General’s office and return with a more reliable explanation.
“We want to give you time to sit down and come back with solid answers that can help us close these matters,” he said.
The audit questions were part of a wider review of the hospital’s financial performance between 2019/2020 and 2023/2024.
At the same time, the committee raised concerns over irregular salary advances amounting to Sh930,000 issued to medical interns by the hospital.
The MPs questioned why the advances were issued to interns who had been contracted for less than 12 months, which goes against the hospital’s human resource policy.
The Auditor-General’s report revealed that Sh890,000 of the amount had remained unpaid for more than a year, with no proof that efforts had been made to recover it.
“The hospital might not recover the amount of Sh930,000 advanced to interns,” the audit report warned, noting that the debt had weakened the integrity of the hospital’s total salary advance balance of Sh4.2 million, part of a larger debt portfolio of Sh1.3 billion as of June 2020.
Dr Kirwa explained that the advances were offered to interns due to delays in salary processing by the Ministry of Health.
“The interns are posted by the Ministry of Health, and due to delays in salary processing, we offer salary advances to support their upkeep. Most of these are recovered before the interns complete their terms. However, in rare cases where interns fail to clear procedurally, we pursue recovery through the Ministry and county governments,” he said.
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