Sh2.7 Billion Missing at the Ministry of Health

Auditor-General Edward Ouko has unearthed what could be another scandal at a government institution involving billions of shillings.

In an audit report tabled in Parliament, Ouko says the Ministry of Health cannot account for 2.7 billion shillings meant for the purchase of portable container clinics, free maternity, family planning and managed equipment service in the 2015/16 financial year.

“Out of the 100 portable clinic containers contracted to be supplied by M/s Estama Investment Limited, only 80 LPOs were availed for audit review,” Ouko says in the report.

The Auditor-General says he could not find out how the Ministry spent Sh1 billion allocated for the purchase of portable clinics, Sh879,088,560 set aside for Free Maternity Fund and a further Sh800 million for family planning and medical equipment services.

Further, Ouko says audit established that the Ministry breached numerous provisions of the Public Procurement and Disposal Act and Public Procurement Regulations in the procurement of 100 portable container clinics at a cost of Sh1 billion.

"Funds amounting to Sh2,679,088,560 had procedural infractions and could not be accounted for," Ouko says in the special report.

Business Daily reports that a leaked internal audit report at the Health Ministry shows that billions of shillings were lost in a scam involving diversion of funds, inflated prices, double payments, and manipulation of the Integrated Financial Management System (IFMIS).

The internal audit report says Sh889 million meant to be released to county governments to support the free maternity programme and purchase of mobile medical clinics for urban slums were diverted.

“The special audit team encountered challenges in an effort to execute and report on the audit in time. These include missing documentation to support the request for approval of the supplementary estimates amounting to Sh2,552,087,201, therefore justification of the supplementary estimates could not be reviewed,” the report says as quoted by Business Daily.