The Lower Eastern Times Opening The Third Eye
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Auditor General Nancy Gathungu has revealed significant irregularities in the procurement of the technology system for the Social Health Authority (SHA), urging Parliament to take swift action against those accountable.
Testifying before the Senate Public Accounts Committee, Gathungu emphasized that she had met her constitutional obligation by exposing flaws in the tendering process.
“I have concluded that public resources were neither used effectively nor lawfully in this matter. Issues regarding governance and risk management are clear, and I have made them known,” she stated.
Her comments came in response to senators who criticized her reports for lacking direct recommendations for prosecution. Gathungu responded, emphasizing that it was now Parliament’s responsibility to ensure accountability.
Committee Chair Moses Kajwang (Homa Bay) acknowledged her findings but lamented the absence of consequences for those implicated.
“Kenyans are relieved that someone has finally uncovered the truth about special purpose vehicles, which are really just public looting schemes—rushed into existence to justify emergency procurement under the guise of social emergencies, while they’re actually vehicles for siphoning public funds,” he remarked.
Nairobi Senator Edwin Sifuna urged Parliament to cancel the contract to prevent further financial losses.
“Can we take definitive action? Can we terminate that contract? We cannot allow people to benefit from crime. Let’s declare SHA a criminal enterprise and shut it down immediately,” he said.
Kajwang emphasized that while the Auditor General had exposed the violations, it was now up to lawmakers to ensure action through administrative steps, investigations, and prosecutions.
“The Auditor General has done the diagnosis; now Parliament must prescribe the remedy, and that remedy must involve the harshest punishment—even if it means shutting down the system,” he stated.
His comments highlighted the need for lawmakers to move beyond debate and enforce accountability.
Gathungu’s 2023-2024 audit report revealed serious legal violations in the Ksh104 billion procurement of SHA’s technology system. The report pointed out issues such as unbudgeted and non-competitive procurement, an unclear scope of work, and the absence of payment agreements. It also flagged contract clauses that hand over control of the system to a private entity, preventing government health agencies from accessing or modifying it.
Additionally, the contract stipulates that disputes must be resolved by the London Court of International Arbitration, effectively excluding Kenya’s legal framework.
The audit further revealed that the State Department of Medical Services obtained the system outside the approved procurement plan and medium-term budget, using direct sourcing, which violated the Public Procurement and Asset Disposal Act, which mandates a fair, transparent, and competitive procurement process.
