Governors raise alarm over Sh200 million lease of medical equipment scam

Chairman of the Council of Governors Josphat Nanok making his remarks at Delta house in Westlands Nairobi. [Edward Kiplimo/Standard]

County bosses have claimed the medical equipment leasing scheme is scandalous after it was varied by more than 100 per cent.

The Council of Governors (CoG) says under the Sh38 billion Managed Equipment Service (MES), counties were originally paying Sh95 million, but are now being told to fork out Sh200 million annually.

This means that counties now pay cumulatively Sh9.4 billion per year up from Sh4.5 billion. The money is deducted directly from county allocation and paid to the private suppliers by the National Treasury.

“The Government signed an agreement for MES and later signed MoUs with the county governments on the same. The governors have actually just learnt with shock that the cost of the MES has moved from Sh95 million to Sh200 million per year, without clear explanations,” said CoG Chairman Josphat Nanok.

The county bosses have protested that Treasury Cabinet Secretary Henry Rotich reduced the County Revenue Allocation by Sh14 billion without consultation or reasons given.

Kenya gazette

Mr Rotich had published in the Kenya gazette dated June 29, 2018 the revised disbursement of county governments’ equitable share of allocation of the 2017/2018 year funds.

“The CS has gone ahead to publish the revised county governments share downwards by Sh14 billion in the gazette notice. This is without discussion, consultation or approval of Parliament in the amendment of the Division of Revenue and County Allocation of Revenue Acts. This renders the process illegal and outright abuse of office,” said Mr Nanok.

The county chiefs also questioned why there was more scrutiny on county budgets and expenditures than in the national Government, adding that if the Government was serious about fighting corruption, all unaudited reports and accounts must be approved by Parliament.

Audited accounts

Nanok argued that the last audited accounts for the counties were that of 2016-2017, while the last audited accounts for the National Government were still as far as 2013-2014 financial year.

“There is more scrutiny on county budgets and expenditures. The last audited accounts for the counties are 2016-2017, while the last audited accounts for the national government are 2013-2014,” said Nanok.