Auditor General Nancy Gathungu has defended her report, which exposed procurement violations in the Social Health Authority’s (SHA) healthcare information technology system worth Ksh.104 billion, claiming it was factual and ethical.
Gathungu, who spoke before the Senate County Public Accounts Committee (CPAC) on Tuesday, shed light on some audit concerns, stating that the system was riddled with major errors and illegalities.
Despite criticism from those in government about the accuracy of her report, the Auditor General stood firm.“The issues that have been raised are my audit findings… already I have concluded that there was no effectiveness or lawfulness in that matter,” she said.
Furthermore, Gathungu expressed concerns about the system’s confusing flaws, such as the payback mechanism used, which permits service providers to withhold 2.5% of member contributions, or Ksh.10 billion per month.
“Internal controls have not been followed, the governance structure has problems, there is no risk management, and thus we have these issues,” she said.
“Kenyans are finally happy that someone has uncovered these special purpose vehicles which are special looting vehicles put together to get direct procurements,” CPAC Chair and Homa Bay Senator Moses Kajwang’ said in response.
“They take 2.5% from contributions and claims and something they call trace and track that they are also taking another 1.5% on track and trace,” Nairobi Senator Edwin Sifuna added.
Gathungu left it up to Parliament to decide what to do next, despite MPs calling for the SHA contract to be cancelled.
“Why does your report fall shy of giving those strong recommendations that the law permits you to make… we can’t continue to let people enjoy the proceeds of crime. Let us just declare this SHA a criminal enterprise,” said Sifuna.
“The ultimate role and responsibility for action on OAG report is Parliament, so when you speak on the issues from the public, just look at that chain of accountability system,” Gathungu responded.
The Auditor General’s study identified various flaws in the acquisition of the system, which is not owned by the government. These include uncompetitive procurement, a lack of a payment arrangement agreement, unfavourable contract conditions, and a lack of risk assessment, among others.
Add Comment