Auditor: County paid Sh10m for equipment not delivered

Auditor General Edward Ouko has revealed shocking misuse of public funds in the Busia County government.

The latest audit report says in the Financial Year 2016-17, Governor Sospeter Ojaamong’s administration paid an agency Sh10 million to supply digital health equipment, which were never delivered.

According to the report, the Department of Health and Sanitation paid a local clearing and forwarding firm to clear and transport the digital health equipment from the Port of Mombasa to Amukura Health Centre.

The money was to cater for supply, shipping, duty charges, Pharmacy and Poisons Board permit, Kenya Ports Authority charges, and charges for custom warehouse and transport from Mombasa to Amukura.

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Paid in full

The report says however that the agreement between the county government and the firm did not indicate the specific digital equipment that were to be supplied.

When auditors visited Amukura Health Centre, they found out that the equipment were yet to be delivered but the firm had been paid in full.

“In addition the department had not conducted a feasibility study on the viability and sustainability of the digital health project before it was initiated,” reads the report.

The same department also paid a local construction company Sh53 million to build an Accident and Emergency unit at the Busia Referral Hospital.

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The audit report reveals that the contract was to be executed within one year from June 2014 to June 2015. However, to date the unit has not been completed.

“No evidence has been presented by the management to indicate that the project period was extended.

In addition, progress report to confirm that the execution of the project was supervised by relevant department was not provided for verification,” reads the report.

The project, which stalled at 70 per cent as per the report, has since been awarded to another contractor to the tune of more than Sh40 million.

The same department paid a construction company Sh31 million out of the Sh44 million that had been set aside for the construction of a Maternity and New Born Unit at the referral hospital.

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The project was to be completed within 2014-15 fiscal year but it stalled at 40 per cent.

Auditor GeneralEdward OukoGovernor Sospeter OjaamongBusia County10 millionHealth Equipment