Auditor: It's hard to tell if cash was lost at Afya House

The Auditor who compiled the interim report in the Ministry of Health Bernard Muchere stresses a point when he appeared before the Senate Committee on Health to explain corruption allegation saga in the the Ministry at Parliament Chambers 22-11-16 PHOTO MOSES OMUSULA

Only a forensic audit can show if taxpayers’ money was lost in the multi-billion-shilling Health ministry saga, the auditor behind a leaked dossier has said.

Bernard Muchere, the Head of Internal Audit at the Ministry, told Senate’s Health Committee that it is difficult to ascertain if money was misappropriated in the docket without carrying out an audit.

Health Cabinet Secretary Cleopa Mailu and his Principal Secretary Nicholas Muraguri have denied claims that the ministry has lost Sh5 billion, insisting only Sh3.1 billion is yet to be accounted for.

“It is difficult for me to tell if any money was lost. Unless a forensic audit of the ministry’s accounts is conducted,” Mr Muchere told members of the committee led by Senator Wilfred Machage (Migori).

“A forensic audit can actually confirm whether money was lost, whether a crime was committed. A normal audit only highlights the red-flags,” he explained after nominated Senator Zipporah Kittony asked him to explain exactly how much money was lost.

During yesterday’s session, Muchere tabled a final detailed audit report from the preliminary document that was leaked to the media last month, sparking public outrage.

The report dwells on the four audit areas he questioned in the leaked report. These are supplementary estimates, budgetary over-expenditure, free maternity money that was diverted to other uses and pending bills.

FINAL REPORT

“In the final report I have highlighted the four issues. I have pointed out the areas where there was non-compliance with the financial laws and regulations,” he explained.

The auditor, in the detailed report, questioned how supplementary estimates of Sh515.7 million and Sh350 million were arrived at.

“The requests for supplementary budgets should meet the criteria as defined under the Public Finance Management (PFM) 2012 Act,” reads the report in part.

Sh268 million, according to the report, was irregularly granted to Kenya Medical Training College and another Sh413 million to Curative and Rehabilitative Health Services department.

“To avoid over-expenditure, the ministry should adhere to budgetary provisions/limits set by the law,” said Muchere in the report.

Also queried in the report was how Sh889 million from the Free Maternity Funds was diverted to pay private firms for the supply of goods and services. Another Sh447 million for construction of buildings was diverted and used to settle pending bills.

Yesterday, Muchere also disclosed to the committee that his been accorded adequate security after he complained that his life was in danger.