The ghost of the Covid-19 virus has refused to go away, with the latest revelations that Kenyans are set to lose Sh8.3 billion due to an apparent blunder by the Ministry of Health.
It has emerged that Kenyans
would fork out the billions to pay for undelivered and ‘unneeded’ doses
of Covid-19 vaccines ordered by the
Ministry in 2021.
The revelations are contained in
the latest audit report for the Ministry of Health for the financial year
ending June 30, 2024, released by
auditor general Nancy Gathungu.
The disclosures could focus the
spotlight on the already troubled ministry and provoke uproar over
government spending during the
global pandemic.
The MoH currently faces a public
furore over its implementation of
the new health programme under
the Social Health Authority.
Kenya reported its first case of
the virus in March 2020, triggering
panic and the hurried procurement
of health commodities – resulting in illegalities and irregularities that
exposed taxpayers’ money.
In what could rekindle the procurement mess and alleged massive
graft at Kenya Medical Supplies
Authority during the pandemic, the
ministry ordered some 13.33 million Covid-19 doses valued at Sh7.46
billion.
The order followed an arrangement between the government, the
Africa Vaccine Acquisition Trust and
the Export-Import Bank (AFREXIMBANK) entered on May 26, 2021.
However, the delivery was only
made for 1.80 million doses, with
the balance of 11.52 million doses
pending delivery.
Out of the balance, the manufacturer had produced 2.72 million
doses as of August last year, but these
were not shipped to the country as
the government indicated it no longer
needed them.
However, despite this, the government was obligated to pay for the
entire order as per the terms of the
agreement.
“The unshipped component was
indicated as no longer needed and
was due for destruction,” the report
states.
It was unclear why MoH officials
failed to conduct due diligence and
proper surveillance of the scourge
to inform the procurement orders.
The report adds that Cabinet’s approval to destroy the wasted vaccines
was being awaited.
The unshipped doses have since
attracted a penalty amounting to
Sh930.59 million.
“The statement of account from
AVAT dated May 2024, indicated
that Kenya had an outstanding obligation of $64.88 million or Sh8.38
billion equivalent,” the report states.
The amount comprises accrued
interest of $7.19 million (Sh930.59
million) for doses that were manufactured as per the contract but not
requisitioned.
Gathungu reveals that although
the government has engaged the
AFREXIMBANK to waive the interests, the Bank has not acceded
to the request, at least at the time
of the audit.
“From the foregoing, value may not
have been realised from the agreement for the supply of Covid-19 doses while the government is at risk of
accruing further interest with the
continued delays in settlement of
the accounts.
“In the circumstances, the project
will incur expenditure for doses not
received.”
At least 350,000 Kenyans contracted the virus, with more than
5,000 patients succumbing to the
scourge, according to data by the
ministry.
In 2021, MPs ordered the prosecution of top Kemsa officials implicated in the dubious procurement of
Covid-19 medicines and safety gears.
The procurement was characterised by inflation of costs and
over-procurement of key items such
as face masks.
“All suppliers that may have supplied Kemsa at a price higher than
the recommended price should
refund the government the excess
payment within a month of such
price determination,” the National
Assembly’s Public Investments Committee has recommended in a report.
Top Kemsa bosses were implicated
in the Sh7.8 billion Covid-19 procurement scandal.
This followed an investigation
by the Ethics and Anti-Corruption
Commission.
In the scandal, taxpayers are believed to have lost more than Sh3
billion following the irregularities as
stocks remained unused and were to
be sold at throwaway prices.
The agency said it forwarded its
file to the DPP recommending the
prosecution of officials of several
firms awarded multi billion-shilling state contracts for the supply
of Covid-19 emergency equipment.
“Investigations further established
Kemsa did not engage any of the
prequalified service providers for the
delivery of the Covid-19 materials,”
the EACC said.
However, despite the conclusion
of the investigation by both EACC
and Parliament, heads are yet to roll.
