The Committee on Implementation has directed the Principal Secretary (PS) Medical Services Mr. Harry Kimutai to constitute a multi-agency team to investigate the irregular procurement and fraudulent payments at the Kenya Medical Supplies Authority (KEMSA) at the height of the COVID-19 pandemic.

 The fraudulent dealings which relate to purchase and supply of COVID-19 emergency commodities by KEMSA led to irregular expenditure of public funds of approximately Kshs. 7.8 Billion.

The PS was among the officials from the Executive that had been invited by the Committee to apprise the Committee on the progress made towards the implementation of the recommendations of the Public Investment Committee’s Report on the Special Audit on Utilization of COVID-19 funds by Kenya Medical Supplies Authority. Key among the recommendations was that the Ministry of Health forms a multi-agency team to investigate the matter.

The directive followed the PS’s admission that before the Committee wrote to him asking him

to update them on what the Ministry had done towards the implementation of House Resolutions on this matter, he was not seized of this matter.

“The Ministry prior to receipt of this letter had no record of a letter requesting for the formation of the multiagency team to look into the Covid-19 procurement processes at KEMSA”, he admitted.

Members led by the Chairperson Hon. Raphael Wanjala (Budalangi) not satisfied with his explanation, took him to task on why the recommendations of the House had not been implemented 4 years down the line.

They cautioned him that the manner in which the State Department had handled the matter could attract the invocation of the Standing Orders, meting out some punitive measures to him for non-cooperation.

“The government works in perpetuity. The fact that you were not serving in your current position of PS is not an excuse enough as to why the House recommendation has not been implemented. Once you assumed your position, you should have acquainted yourself with all the matters relating to your State Department”, Hon. Wanjala told him.

“Last week, the Members castigated this Committee on the floor of the House for slow implementation of House resolutions. We cannot continue taking blame because of efficiencies of public officers. We’re giving you two weeks to constitute the team, and to avail the report of that team before this Committee”, Hon. Wanjala directed.

In defence, the PS pleaded with the Committee to allow him more time, adding that once he had become seized of the matter, he had taken quick action and dispatched correspondences to the recommended agencies to appoint nominees to facilitate the formation of the multiagency team.

On their part, the Ethics and Anti-Corruption Commission (EACC) told the lawmakers that upon receipt of the recommendations contained in the Report by the Public Investments Committee, the Commission had adopted a phased approach to deal with the vast nature of the investigation.

The EACC CEO Mr. Twalib Mbarak told the Committee that the investigation was categorized to focus both on the demand and supply side of the contracts. The Commission noted that they had delved into the probe of public officers alleged to have been involved in the irregular procurement and payments by KEMSA as well as the suppliers alleged to have fraudulently and irregularly received public funds from KEMSA.

Mr. Mbarak however noted that though the Commission had concluded its work, the decision of the Director of Public Prosecutions (DPP) was being awaited.

Upon scrutiny of the Commission’s submissions, Members decried the back and forth of the investigations between the EACC and the ODPP. The lawmakers noted that the decision on if to charge those culpable after the EACC Investigations or not, had inordinately delayed. The Committee thus resolved to invite the DPP to shed light on the status of investigations.

At the same time, the Director General, Kenya Revenue Authority (KRA), Mr. Humphrey Mulongo Wattanga informed the Committee that the Authority had collected Kshs. 354,089,143 in taxes on COVID-19 related items from various importers in the period between March 2020 and July 2020. These items included face masks, KN95/N95 masks and surgical masks.

Mr. Wattanga told the Members that KRA had received a list of 77 taxpayers who had supplied pharmaceutical equipment and products to KEMSA during the COVID-19 period in the year 2020. He noted that KRA had conducted compliance reviews for the cited companies and businesses.

He also informed the Committee that 97 per cent of the supplies to KEMSA worth Kshs. 7,346 million were mainly VAT-exempt. Of the total, Kshs. 4,510mn had been paid by KEMSA.

To allow for closure on the matter, the PS and the Director of Public Prosecutions are expected to submit a report before the Committee.