Auditor puts ministry on the spot over failure to account for billions
SEE ALSO :How Parliament can check Auditor GeneralThis was a 20 per cent of the contract value which was paid as a condition for the government to obtain a loan of Sh7 billion from China to finance the purchase of the CT scanners. In its report for the year ending June 2018, Ouko questioned why the scanners procured through Neusoft Medical Systems Company Limited had no procurement documents provided at the time of the conclusion of the audit review. “It was not possible to ascertain whether due diligence and fidelity to the Public Procurement and Assets Disposal Act was observed,” the report reads in part. Ouko also questioned why deposits of Sh10.9 billion, that were held in the former ministries of Medical Services and Public Health and Sanitation which merged to form Ministry of Health were never transferred to the new deposit account contrary to National Treasury Circular of September 2013. “The management is in breach of Treasury Circular of 2013 for failing to transfer the deposits of Sh10.9 billion to the new deposit account and as a result of the validity and accuracy of the accuracy of the accounts deposits balance of Sh52 million could not be ascertained,” reads the report.
SEE ALSO :Auditor General wants Ifmis splitIn addition, Ouko revealed that taxpayers did not get value for money in the purchase of Sh800 million portable clinics. In its report, the auditor said despite the Ministerial Tender Committee awarding an investment company to supply 100 portable medical clinics at a cost of Sh10 million each, the contract has not been executed since 2016. According to Ouko, on July 17, 2015, the contract to supply, install, commission and hand over was signed between the investment company and the ministry. “The contract period was to be from the date of the signing of the contract to the end of financial year 2015-16 and has since elapsed despite the fact that the contract has not been executed,” reads part of the report. Ouko further said that during the 2015-16 financial year, the ministry paid Sh800 million for the clinics but before installing, commissioning and handing over thus contravening the contractual agreement.
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