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Over Sh200 million lost at National Quality Control Laboratory

By Daniel Psirmoi | May 31st 2017


Auditor General Edward Ouko

Millions in taxpayers' money may have been lost at an agency charged with verifying the quality and safety of pharmaceutical products in the country.

A recent report by Auditor General Edward Ouko has established that at least Sh200 million cannot be accounted for at the National Quality Control Laboratory (NQCL) during the 2015-2016 financial year.

In an audit report tabled in the National Assembly last week, Mr Ouko raised concerns as to why there was a disparity between the amount of money channelled to the institution as a Government grant and the records at the Ministry of Health.

According to the report, NQCL, which is a department under the Pharmacy and Poisons Board, did not provide an explanation why the figures maintained by the two entities in their financial records did not tally.

"The Government grants (recurrent and development) balance of Sh53.5 million differed with the total Government grants in the records at the parent Ministry of Health of Sh143.2 million. This resulted in a variance of Sh 89.6 million," reads the report.

Not possible

"Consequently, it has not been possible to confirm the validity and accuracy of total revenue of Sh111.9 million and Government grants of Sh53.6 million reflected in the statement of financial performance for the year ended 30 June, 2016," adds the report.

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The auditor also flagged a number of items posted in the financial statements of NQCL, which he noted had variances that were not explained.

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