Kemsa scandal: anti-graft lobby group calls for speedy probe

An anti-corruption lobby group is corroborating evidences of corruption claims at the Kenya Medical Supply Authority (Kemsa) to facilitate speedy investigations.

Network Action against Corruption (NAAC) which works with agencies and national investigation bureaus to unearth sleaze, said it intends to collaborate with the Ethics and Anti-Corruption Commission (EACC).

The parastatal which provides medical logistics has lately been on the spotlight over malpractices including the recently unearthed procurement and financial irregularities that jeopardised more than Sh100 billion of donor funds as well as allegations of misuse of funds meant to boost the fight against Covid-19.

It has also been accused of overpricing the medical supplies and drugs it distributes in the counties.

“NAAC obtained intelligence from the Kemsa, Public Procurement Review Authority, Auditor General’s office, audited accounts reports and suppliers’ financial statements on the misuse, and pilferage of funds meant to enhance the prevention of the spread of the Covid-19 and health workers that was turned into a looting spree,” said Dr Gordwins Otieno Agutu, the Chief Executive Officer at NAAC.

Dr Agutu called for the Parliamentary Committee on Health report on the same investigations be similarly made public since the case is a matter of public interest and touches on public funds.

The NAAC boss claimed cartels at Kemsa had made away with the hope that Kenyans had in the containment of the coronavirus and protection of the country’s medical practitioners – an action that caught Health Cabinet Secretary, Mutahi Kagwe unawares after he had assured the public of the country’s preparedness to check the spread of the disease.

“The fleecing started when the cartels tendered to supply face masks allegedly fetched at Sh1,800 sold to Kemsa at Sh4,000. The actual price could be Sh600 translating to an average of Sh50 per mask,” Dr Agutu said.

He further claimed that Kemsa procurement floated tenders; whereby after being awarded the contracts, the suppliers had their contracts cancelled again without the Procurement Evaluation Committee’s approval.

The tenders were essentially mismanaged and the records mishandled according to the NAAC CEO.

Dr Agutu also claimed that Kemsa officials coordinated and worked with frauds; sharing records of existing suppliers for purposes of conducting fraudulent activities. 

“It is the directive of the President for the fight against corruption through institutions, individuals, and any other channels available and NAAC supports the initiative and will remain utmost inductive with no favour nor fear but provide accurate information to establish a case,” said Dr Agutu.

A recent special audit of the Kemsa by the United States Agency for International Development (USAID) and the Global Fund documented malpractices including stock management challenges at its warehouses.

It recommended an overhaul of its procurement system replaced with a new accountable one that has an end-to-end supply chain visibility platform incorporated to prevent losses and wastage.