Treasury CS Rotich wants Isiolo County on private deal for health services

The Government has questioned a Sh443 million deal between Isiolo county and a foreign company for provision of community health services.

Treasury Cabinet Secretary Henry Rotich said the contract between the county and Living Goods Limited had violated several provisions of the law.

“Having analysed the draft agreement between the county government of Isiolo and Living Goods Limited, preliminary findings indicate that it contravenes provisions of the Public Finance Management Act, 2012,” Mr Rotich said.

The CS noted that sections of the Public Procurement and Disposal Act had also been contravened.

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Rotich said Governor Mohamed Kuti’s administration had not explained how the services of Living Goods Ltd were procured, adding that the county had failed to follow laid down regulations on foreign funding.

“It’s not clear how the process of appointing Living Goods was carried out. Any procurement of goods and services should follow laid down procedures as contained in the Public Procurement and Asset Disposal Act, 2015."

The Treasury CS wrote to Mr Kuti on January 18, to warn him against implementing the controversial deal, which is already being probed by Parliament.

Isiolo Senator Fatuma Dullo presented a petition on behalf of residents to the Senate to oppose the agreement, which will see the firm also take charge of three sub-county hospitals for four years.

Ms Fatuma cited lack of public participation.

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Rotich said the deal violated provisions of the Public Finance Management Act (PFMA) on the operations of joint bank accounts.

“The PFMA regulations provide that authorisation to open, operate and close accounts rests with the county treasury and as such cannot be contained in an agreement," he said.

GovernmentSh443 million dealIsiolo countyHenry RotichLiving Goods Limited