MPs probe KEMSA over excessive spending, Covid supplies procurement violations
By Maureen Kinyanjui |
During the pandemic, the authority spent Sh264.46 million to acquire 126,200 gloves, far exceeding the approved order of 93,730 units.
The National Assembly's Public Investments Committee on Social Services, Administration, and Agriculture (PIC-SSAA) has launched a probe into the Kenya Medical Supplies Authority (KEMSA) over procurement irregularities during the Covid-19 pandemic.
The inquiry, focusing on the Auditor General's findings for the Financial Year 2019-2020, questioned KEMSA's management, including CEO Waqo Ejersa and acting Finance Director Pauline Jepkemoi, on financial discrepancies such as an unauthorised Sh38.8 million depreciation reversal and excess spending on surgical gloves.
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The session on Thursday kicked off with questions about KEMSA's Sh38.8 million depreciation reversal for computer hardware, flagged by the Auditor General for its impact on the net book value of Sh2.98 billion as of June 2020.
KEMSA explained that this was a corrective measure after discovering that disposed assets were still listed in the fixed assets register.
However, Committee Chairperson Emanuel Wangwe sought further clarification.
"Considering Sh38 million is a significant sum, how was this adjustment normally handled? Your response is not clear," Wangwe said.
Surgical gloves
The committee also scrutinised KEMSA's procurement of surgical gloves during the pandemic, where the authority spent Sh264.46 million to acquire 126,200 gloves, far exceeding the approved order of 93,730 units.
This resulted in an unauthorised excess expenditure of Sh184.79 million.
The Auditor General's report also highlighted that KEMSA could have saved Sh63.8 million if the tender had been awarded to the lowest bidder.
"The procurement process clearly did not follow the expected procedures, and the overspending is a serious concern," Wangwe remarked.
In addition, the committee pointed out that KEMSA lacked the required emergency procurement approvals from its parent ministry and board, violating Section 53 of the Public Procurement and Asset Disposal Act, which mandates that approved budget estimates be in place before procurement begins.
KEMSA defended its procurement decisions, citing the unprecedented challenges posed by the Covid-19 pandemic, including supply chain disruptions, price hikes, and shipping delays.
"The outbreak caused an unprecedented crisis — lockdowns, shipping delays, and inflated prices. We procured to avert a national shortage,” Ejersa explained.
However, despite these efforts, the inquiry revealed that low commodity uptake by counties left KEMSA with unsold Covid-19 stocks worth Sh5.64 million by June 2020.
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