Firm sues Health PS Julius Korir in Sh43 billion row

Health Principal Secretary Julius Korir. FILE PHOTO | NATION MEDIA GROUP  

In Summary

• Equip Agencies Ltd sued the PS and the Attorney-General following a protracted legal battle over Sh43 billion which it was to be paid after supplying the equipment in 1993 and 1995.
• The Health ministry was at first required to pay the firm Sh1.9 billion. However, the amount has gone up after attracting interest.

By MAUREEN KAKAH
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A company which was contracted to supply anti-malaria equipment and drugs wants Health Principal Secretary Julius Korir cited for contempt of court.

This follows the government’s failure to clear a debt of more than Sh43 billion. The company wants the PS committed to civil jail for six months.

Equip Agencies Ltd sued the PS and the Attorney-General following a protracted legal battle over Sh43 billion which it was to be paid after supplying the equipment in 1993 and 1995.

ROW

The Health ministry was at first required to pay the firm Sh1.9 billion. However, the amount has gone up after attracting interest.

There have also been at least three court judgments over the row. In all of them, courts have ruled in the company’s favour, but the ministry has not acted since 1999 when the matter first landed in court.

Through lawyer Waweru Gatonye, the company accused the ministry of refusing to clear the debt as ordered in the first judgment which was upheld in a 2011 as well as a 2017 case.

“The court should issue summons against the Health PS to appear before it and show cause why contempt of court proceedings should not be instituted against him for failure to comply with orders issued on December 18, 2017 by Justice Roselyn Aburili,” said Mr Gatonye, adding that the court needs to act urgently.

DECISION

The first judgment was issued on March 1, 1999, the second one on December 2, 2011 while the latest decision was the one made by Justice Aburili last year.

According to Mr Gatonye, the decisions have never been appealed by the government yet the money has never been paid as required.

The money was supposed to be paid to the firm in separate tranches after delivering the equipment.

But the non-payment has been attributed to a letter to the company from the office of the PS indicating that the ministry had suspended supplies from Equip Agencies.

In the letter, the ministry had alleged that it required time for stock take and review funding for the programme. In the judgments, the judges have pointed out that there have never been a dispute over the supplied goods or questions raised with regard to quality or standard of the specified items.