Officials accuse auditor of leaking Sh5b scam report

Health PS Nicholas Muraguri and CS Cleopa Mailu before National Assembly’s Health Committee yesterday over the alleged Sh5 billion scandal at the ministry. [photo: MOSES OMUSULA/Standard]

Senior Health ministry officials yesterday accused auditor Bernard Muchere  of leaking a report on an alleged Sh5 billion scam.

Cabinet Secretary Cleopa Mailu and Principal Secretary Nicholas Muraguri said Mr Muchere may have leaked the report prematurely and dismissed the alleged scandal.

The two, who appeared before National Assembly's Health committee together with a senior ministry accountant Joyce Mutugi, poked holes in the report whose findings they said are just based on 'paperwork'.

"The auditor was supposed to verify every detail. The fact is he never did this and drew his conclusion just by looking at papers and not interacting with the relevant staff," said Mailu.

Mailu said the auditor did not travel to Mombasa to verify existence of the clinics. He had been asked to explain why the setting-up of the 100 mobile clinics, each of which cost Sh10 million, had stalled.

Muraguri said distribution of the clinics stalled because of the 'push and pull' with MPs on where they should be located in the constituencies.

The officials alleged Muchere did not seek to verify vouchers paid out on a daily basis as recommended before compiling his report.

"I am not an auditor... but what I know is he (Muchere) was supposed to get records of payments from the cash office on a daily basis for verification. An auditor is also supposed to scrutinise the system," said Mutugi.

She added: "And if discrepancies are found, he was supposed to speak to the PS through the accountant's office but this never happened."

Muchere was also accused of submitting the report to the CS directly instead of going through the PS who is the ministry's accounting officer.

"This being an isolated case, it is only him who can explain why he did so," said Mailu. He said the ministry has no clue on who else could have leaked the report. "But in my mind, I still think it is the auditor himself."

Mailu said a full internal report will be made public in a week's time. The House team led by Rachel Nyama will travel to Mombasa today to verify existence of the mobile clinics.