{"id":15226,"date":"2020-10-01T18:43:48","date_gmt":"2020-10-01T18:43:48","guid":{"rendered":"https:\/\/www.africa-press.com\/kenya\/?p=15226"},"modified":"2020-10-01T18:43:48","modified_gmt":"2020-10-01T18:43:48","slug":"audit-kemsa-to-lose-sh2-3b-in-sale-of-covid-19-supplies","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/community\/audit-kemsa-to-lose-sh2-3b-in-sale-of-covid-19-supplies","title":{"rendered":"Audit: Kemsa to lose Sh2.3b in sale of Covid-19 supplies"},"content":{"rendered":"

Authors:\u00a0RAWLINGS OTIENO AND WILFRED AYAGA<\/strong>
\nAfricaPress-Kenya:<\/strong> Taxpayers are set to lose Sh2.3 billion worth of Covid-19 supplies\u00a0that will now be sold at lower prices than they were bought.<\/p>\n

A special audit of the Covid-19 funds done by the Office of the Auditor General (OAG) shows there was irregular use of retrospective direct procurement method, commencing the procurement process without approved budgets and failure to integrate procurement plan to the budget process.<\/p>\n

In addition, Auditor General Nancy Gathungu said the\u00a0Kenya Medical Supplies Agency\u00a0(Kemsa) failed to conduct a market survey for items being procured, engaged non-prequalified suppliers with inadequate experience in the market, and conducted inefficient stock management procedures thus exposing public funds to value for money risks and red flags indicating possible procurement frauds.<\/p>\n

The special audit also shows the procurement was not conducted for Kemsa\u2019s best interest, but could have been influenced by suppliers.<\/p>\n

\u201cThere is need for further investigations on all companies engaged by Kemsa to establish acts of procurement fraud. The items were procured at a higher price as compared to the current market pricing implying that Kemsa may realise a loss of Sh2,338,261,175 if the products are to be sold at the current market price,\u201d reads the report.<\/p>\n

The audit notes that Shop \u2018N\u2019 Buy Limited, Kilig Limited and Nanopay Limited had been in existence for less than one year before being awarded the contracts worth Sh900 million, Sh9 million and Sh349 million, respectively, to supply K95 masks and personal protective equipment.<\/p>\n

\u201cThe special audit established that there was no evidence that the initiation of procurement process for Covid-19 related items under Kemsa capital budget was triggered by a needs assessment to establish the demand for these products,\u201d reads the report.<\/p>\n

According to Gathungu, Kemsa initiated procurement without planning and budgeting and used direct procurement in the guise of urgency, yet the products are still lying at the agency\u2019s warehouse for as long as six months.<\/p>\n

The report comes barely two months after the Senate Standing Committee on Health and the Senate Ad Hoc Committee on Covid-19 requested the OAG to\u00a0conduct a forensic audit\u00a0on the procurement undertaken by Kemsa.<\/p>\n

The report shows that Kemsa\u2019s management violated the Public Procurement and Asset Disposal Act in all material aspects. The budgetary management process for capital budgets did not comply with the Public Finance Management Act and, given that 97 per cent of supplies procured are still lying unused, there was no value for money.<\/p>\n

\u201cKemsa irregularly utilised Universal Health Coverage and Capital Budget to procure Covid-19 related items worth Sh7,632,068,588 without evidence of approval of the budgets by relevant authorities,\u201d says Gathungu in the report.<\/p>\n

She has recommended further investigations be conducted by the Directorate of Criminal Investigations and the Ethics and Anti-Corruptions Commission to establish criminality on the procurement process.<\/p>\n","protected":false},"excerpt":{"rendered":"

Authors:\u00a0RAWLINGS OTIENO AND WILFRED AYAGA AfricaPress-Kenya: Taxpayers are set to lose Sh2.3 billion worth of Covid-19 supplies\u00a0that will now be sold at lower prices than they were bought. A special audit of the Covid-19 funds done by the Office of the Auditor General (OAG) shows there was irregular use of retrospective direct procurement method, commencing […]<\/p>\n","protected":false},"author":84,"featured_media":9833,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,3,2111,8],"tags":[1539,672,5556,5354],"class_list":["post-15226","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-community","category-coronavirus-in-kenya","category-homepage-english","tag-covid-19","tag-kemsa","tag-kemsa-probe","tag-kemsa-scandal"],"yoast_head":"\nAudit: Kemsa to lose Sh2.3b in sale of Covid-19 supplies - kenya<\/title>\n<meta name=\"description\" content=\"Taxpayers are set to lose Sh2.3 billion worth of Covid-19 supplies\u00a0that will now be sold at lower prices than they were bought.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/kenya\/community\/audit-kemsa-to-lose-sh2-3b-in-sale-of-covid-19-supplies\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Audit: Kemsa to lose Sh2.3b in sale of Covid-19 supplies\" \/>\n<meta property=\"og:description\" content=\"Taxpayers are set to lose Sh2.3 billion worth of Covid-19 supplies\u00a0that will now be sold at lower prices than they were bought.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/community\/audit-kemsa-to-lose-sh2-3b-in-sale-of-covid-19-supplies\" \/>\n<meta property=\"og:site_name\" content=\"kenya\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2020-10-01T18:43:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2020\/06\/president_uhuru_nomi5eeca1375f1aa.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"500\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/community\/audit-kemsa-to-lose-sh2-3b-in-sale-of-covid-19-supplies#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/community\/audit-kemsa-to-lose-sh2-3b-in-sale-of-covid-19-supplies\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Audit: Kemsa to lose Sh2.3b in sale of Covid-19 supplies\",\"datePublished\":\"2020-10-01T18:43:48+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/community\/audit-kemsa-to-lose-sh2-3b-in-sale-of-covid-19-supplies\"},\"wordCount\":481,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/community\/audit-kemsa-to-lose-sh2-3b-in-sale-of-covid-19-supplies#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2020\/06\/president_uhuru_nomi5eeca1375f1aa.jpg\",\"keywords\":[\"COVID-19\",\"Kemsa\",\"Kemsa Probe\",\"Kemsa scandal\"],\"articleSection\":[\"all news\",\"community\",\"Coronavirus in kenya\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/community\/audit-kemsa-to-lose-sh2-3b-in-sale-of-covid-19-supplies#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/community\/audit-kemsa-to-lose-sh2-3b-in-sale-of-covid-19-supplies\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/community\/audit-kemsa-to-lose-sh2-3b-in-sale-of-covid-19-supplies\",\"name\":\"Audit: Kemsa to lose Sh2.3b in sale of Covid-19 supplies - 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