Health Finance
We submit that the total amount of resources subject of the interim Audit Report is Ksh . 3,121,061,247 and not Ksh . 5 billion as alleged in the media reports . We also wish to confirm to Kenyans that all expenditure queried in the audit report is in accordance with the law and for the intended purposes .
To start with , Ksh . 515 , 795,750 quoted in the audit as irregular Supplementary Estimates for 2015 / 16 was meant to augment funding from Global Funds on HIV / AIDS which targets over 750,000 people who use nutritional foods as medical prescriptions . Parliament and treasury approved this budget . The money was spent on procurement of nutritional commodities in order to cater for vulnerable population in ASAL [ Arid and Semi-AridLands ] regions and population living with HIV .
The ministry contracted four firmsnot five- to supply food supplements to Kenya Medical Supplies Agency ( KEMSA ). KEMSA received the supplements on behalf of the ministry for distribution to health facilities to ease access by the HIV / AIDS patients and other vulnerable populations .
The four firms are Dentmed Kenya Ltd , LifeCare Medics Ltd , Rayovac Industries Ltd and Sundales International Ltd . A total sum of Ksh . 249,996,696 was paid to the firms .
The audit report also queried expenditure of Ksh . 400,000,000 . The ministry would like to say that this money was allocated to infrastructural expansion for Bungoma and Lamu County hospitals . Each hospital was allocated a conditional grant of Ksh . 100 , 000,000 while Nanyuki County hospital got Ksh . 200,000,000 for payment of pending bills for consultancy for inception works .
MoH also deposited Ksh . 265,781,500 as the audit report says into the ministry bank account at the Co-operative Bank of Kenya during the 2015 / 16 .
This payment was for establishing a Letter of Credit for Life Care Medics Limited for the supply of food supplements that were in the high seas . Payments were to be effected upon confirmation of the receipt of goods by KEMSA - the receiving entity .
Letters of Credit are standard practice for payment of imported goods .
The audit report also erred by stating that the ministry allocated Ksh . 800 , 000,000 and from which an amount of Ksh . 530,000,000 was reduced during the Supplementary Estimates received an additional sum of Ksh . 350,000,000 .
The correct position is that an allocation of Ksh . 800,000,000 under Head-1081001701-Item 3110202 under Programme-04-Health Policy Standards and Regulations was reduced by a figure of Ksh . 530,000,000 during the Supplementary Estimates , leaving a balance of Ksh . 270,000,000 . This particular balance was spent on purchase of portable clinics .
Ksh
3.1B
total amount of resources that are subject of the interim Audit Report
The Supplementary Estimates for 2015 / 16 clearly indicate that a sum of Ksh . 400,000,000 and not the amount of Ksh . 350,000,000 mentioned in the report .
The interim audit also erred in stating that in order of IFMIS to accept transactions , the chart of accounts was manipulated . However , this statement is incorrect , as a user cannot manipulate the chart of accounts .
The internal audit also quoted payments of Ksh . 647,323,272.50 as being inconsistent with the purposes intended . We wish to confirm that the transactions complied with the public Finance Management Act and meant to pay suppliers and grants to Lamu and Bungoma county governments .
We also wish to state that award of tender to Estama Investment Ltd followed due process .
The Ministry had a valid contract with Estama Investments Ltd for the supply of 100 Units of portable medical clinics at a unit cost of Ksh . 10,000,000 each , thus totalling Ksh . 1,000,000,000 . This contract was effected through contract agreement No . MOH / HQS / RT / 019 / 2014-2015 of 17th July , 2015 .
We would like to confirm to Kenyans that the ministry received all the 100 Units . We have paid Ksh . 800,000,000 for 80 Units . The ministry will pay a balance of Ksh . 200,000,000 during the 2016 / 2017 financial year .
We take great exception with the Audit Report , as the Head of Internal Audit Unit did not share the Report with the management , as is the standard practice . This , in fact , would have enabled the management to comprehensively address the issues emanating thereof .
The ministry of health is committed to improving the quality of healthcare in the country . We will continue in our endeavour to make healthcare affordable to all .
November-December 2016 15