House to summon Muraguri over Sh13.7bn spending

Dr Nicholas Muraguri. FILE PHOTO | NMG

MPs are planning to grill former Health principal secretary Nicholas Muraguri over Sh13.7 billion that the ministry cannot account for following a special audit by auditor general Edward Ouko.

Mr Ouko has also questioned the procurement of Sh4.6 billion medical equipment through direct tendering, saying that the ministerial tender committee did not provide reasons why it went for restricted tendering process contrary to the Public Procurement and Disposal Act of 2005.

The report, which covers the 2015/16 financial year, questions how public funds were committed to expenditures, some of which did not have the approval of the National Treasury as required by the law while others were not budgeted for.

On Sunday, Ugunja MP Opiyo Wandayi, who is the chairman of the National Assembly’s Public Accounts Committee (PAC), said that Dr Muraguri will be required to respond to the audit issues that also include reallocation of public funds contrary to the procurement law.

“It is important for the former PS to appear to explain this matter of great public concern without fail,” Mr Wandayi said.

Dr Muraguri was the PS during the period under review before he was transferred to the Land ministry after the infamous Sh5 billion scandal. He was succeeded by Peter Tum.

The procurement law requires that the National Treasury must be consulted and approval granted before funds are reallocated.

Dr Muraguri is also expected to respond to the controversial leasing of medical equipment system for county governments valued at Sh4.6 billion, the Sh4.3 billion free maternity funds disbursement to hospitals and purchase of portable clinics at Sh1 billion.

The others are Sh600 million used for construction works at Nanyuki, Lamu, Bungoma and Othaya county hospitals, the purchase of medicines and food rations and supplements at Sh512 million and the Sh3 billion meant for disbursements by development partners.

Mr Wandayi said that the House watchdog committee expects a detailed explanation on the issues raised and why the ministry failed to provide the required documentation to the auditors at the time the special audit was being carried out.

For instance, on the portable clinics, the audit established that M/s Estama Investments Limited was contracted to supply the equipment at Sh1 billion.

Though the items were procured, they were not factored in the annual procurement plan for the financial year 2014/15 as required by the procurement law. The portable clinics had not been put to any use and were still held up at the National Youth Service (NYS) yard in Miritini, Mombasa, according to Mr Ouko.

The affected programmes were family planning maternal and child health programme Sh200 million and medical equipment services Sh600 million.

The auditor notes that vouchers for the payments of the medical equipment were supported with completion certificates that were signed by Mr Morang’a Morekwa, the chairman of the medical equipment services project implementation committee instead of inspection and acceptance committee chairman.

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