Ministry of Health Facing a Fresh Sh7 Billion Scandal

Ministry of Health Facing a Fresh Sh7 Billion Scandal

The Ministry of Health has been hit by a fresh scandal involving the loss of Sh7 billion taxpayers' money.

The scam reportedly involves the purchase of 37 CT scanners at an inflated cost of Sh227 million per unit under the Managed Equipment Service (MES), a deal between the Kenyan and Chinese governments.

Daily Nation reports that the procurement deal led to the loss of about Sh187 million per unit or Sh6.9 billion in total. A unit of CT scanner costs between 40 and Sh45 million at current market price.

The details of the fresh scandal emerged when Health Principal Secretary Peter Tum appeared before the National Assembly's Public Accounts Committee on Monday. He appeared before the team to explain the 2015/16 expenditure and revenue accounts at Afya House.

The PS told the team that even though the contract for the purchase of the medical machines was a government to government one, the ministry abandoned it and awarded the tender to Neusoft Medical Systems Co ltd, a Chinese firm. 

The Kenyan government contributed Sh1.7 billion in the deal under the agreement of economic and technical cooperation signed between the China Development Bank and the National Treasury, which translates to 20% of the total cost.

Despite health being a devolved function, the equipment remained in the hands of the National Government and county units were not involved in their procurement.

“Why are CT scanners treated differently from the MES? If not, why did the ministry fail to lease them the way it has leased others. Were there any reasons why they were not included? I am asking this because the ministry has gone ahead to procure CT scanners separately. Someone can conclude that the reason it was not included in MES was to create room for future rip-off of public funds,” asked Ugunja MP Opiyo Wandayi, who is the chair of Public Accounts Committee.

While the PS agreed that the CT scanners fall in the same category as imaging equipment covered in the MES, he said the ministry had planned to purchase the scanners under a totally different framework.

“I cannot say with certainty that CT scanners were not part of the MES deal. Funding may not have been there,” Mr Tum said.

He defended the inflated costs saying that it involves setting up of new buildings, air conditioners, special thermal film printer, report printer, warranty and spare parts for the scanners for a period of five years.

Comments

Romeo23 (not verified)     Tue, 06/19/2018 @ 02:57pm

This scandals are too much nxt tutasikia NBO County was sold to someone..or Kenya as a whole..Ulafi..What will benefit a Man/Woman to own the whole world but finally loss his soul...Tosheka bana na ile kidogo hata uibe Mamillion Mdomo ni mmoja na exhaust ni moja haina first class and second when we are done in this world tunarudishwa vile tulizaliwa bila chochote..tuache wizi

Imara (not verified)     Tue, 06/19/2018 @ 04:01pm

@GUEST1

Ndugu, umesema kweli. Waswahili hsema, " Jini likujualo halikuli likakwisha."

SULUHISHO:

Wafula Chebukati ndiye aliyetupa majambazi na majizi haya. Kazi yake ilikuwa kuwajulisha wananchi ya kwamba fulani afaa achaguliwa kiongozi: hata lawama yoyote!!!!!

Chebukati, nakuomba ustaafu kwa manufaa ya umma halafu urudishe pesa ulizopokea kama hongo kutupa majambazi haya.

Nyaluo (not verified)     Tue, 06/19/2018 @ 04:44pm

MWAKILISHI should have mentioned something about shs 4.8b.looted from NHIF in 2008/09 by muuaji Raila,majambazi Kibaki,Nyong and Beth Mugo during the Kibaki/Raila looting era.

MLACHAKE (not verified)     Tue, 06/19/2018 @ 10:46pm

Economic crimes aka graft aka corruption gone out of hand have reached a mind boggling level. The problem is sooo entrenched in our collective national psyche such that the only effective & efficient way to deal with it is the adoption of a scorched earth approach which will entail:

1. Thorough lifestyle audit of ALL public officials in government carried out with the help of a credible foreign entity

2. An urgent addition to the Economic Crimes Bill to provide for the consideration of graft as a crime of treason and punishable by anywhere between 20 years behind bars to life imprisonment to execution depending on the severity of the crime. All economic crimes to become unbailable

3. As expected, evil will fight back. Given the severity of the problem, and the consequences it has had on society, including the death of millions (non-working medical facilities, terrorists bribing their way into country, massive increases in the number of people dying from cancer & other lifestyle diseases arising from contaminated sugar & other products, etc), Uhuru, if he’s serious, to suspend the Constitution, fold up his sleeves & declare TOTAL WAR on the vice.

There's no other way to eradicate this problem na kama hatowezana, patieni wengine wetu kazi. The only alternative is for the citizenry to go crazy & start a revolution of which I am ready

Anonymous UI (not verified)     Wed, 06/20/2018 @ 08:35am

Mwananchi must start thinking in self interest. Anyone involved in selling our country for cheap or involved in any kind of corruption should be looked down upon and not be elected. Anyone shaming the country should be shamed by the country. Anyone with money that cannot be explained should not be elected by the Mwananchi for any public position. If the system fails to prosecute them, the Mwananchi must prosecute them by disregarding their I'll acquired wealth and elect their competitors. Mwananchi must also reject Dynasties, they have been babysitting corruption since Independence. It's time for change!!!

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