Ministry of Health fails to account for Sh1 billion

Health Ministry cannot account for Sh1 billion after top officials failed to provide documents to support some payments while in some instances prices of procured items were inflated.

Auditor General Nancy Gathungu has faulted top Afya House officials for not providing payment vouchers for Sh1.1 billion in variations for the leased Managed Equipment Services and additional Sh3 million quarterly payments for hire of transport services.

It also emerged that the ministry spent Sh3 billion on emergency relief and refugee assistance but could not provide payment vouchers for Sh28 million.

According to the audit report by Ms Gathungu, the taxpayer also lost more than Sh7 million after officials inflated prices for computers and printers.

Contract documents

The ministry procured 198 desktop computers, 50 laptops and 13 printers at Sh19 million instead of the prevailing market price of Sh12 million.

“The construction of buildings balance of Sh151,588,886 includes Sh26,610,826 relating to purchase of 198 desktop computers, 50 laptops and 13 black and white printers,” states the report.

“According to the market price index at the time, the amount payable was Sh19,070,650, resulting into an over payment of Sh7,540,176.”

The report also saw the auditor query officials’ outstanding imprest amounting to Sh10 million that should have been accounted for by June last year.

Another Sh1,882,794 paid to a contractor was not supported with contract documents and payment vouchers while journal vouchers in support of adjustment made on June 30, 2020 were also not made available for audit verification.

The ministry is also on the spot over Sh28 million that could not be accounted for in expenditure on emergency relief and refugee assistance.

“The amount includes expenditure on emergency relief and refugee assistance amounting to Sh3,154,296,199 of which payment vouchers for amounts totaling to Sh28,105,636 were not provided for audit verification,” states the report.

The auditor also questioned irregular compensation for employees running into millions of shillings.

Documents reflect compensation of employees’ payments of Sh8,149,395,770. The amount includes basic salaries of permanent employees and personal allowances paid as part of salary of Sh1,058,840,293 and Sh2,491,375,847 respectively.

Retirement age

However, the supporting schedules reflect Sh1,010,562,686 and Sh2,416,930,272 resulting in unexplained variances of Sh48,277,607 and Sh74,445,575 respectively.

The audit also revealed that during the 2019.20 financial year, the ministry irregularly employed 1,009 staff against an approved staff establishment of 361 vacancies.

Analysis of the staff payroll also revealed 26 employees had a net salary amounting to negative Sh1,037,421. They however, received Sh1,627,818 in their bank accounts resulting to over payment of Sh2,665,239.

“Consequently, the accuracy and validity of the compensation of employees’ balance of Sh8,149,395,770 could not be confirmed,” the report says.

A further review of the Human Resource records revealed that there were 30 employees who had attained the mandatory retirement age of 60 but were still on the payroll.

Staff payrolls for the financial year 2019/2020 revealed that, identity card numbers of 10 employees and KRA tax PINs of 17 employees were omitted and two employees had the same bank account number.