How agency dished out scandal tenders

Suspended Kemsa CEO Jonah Manjari.

By EDWIN MUTAI
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Summary

• Suspended Kenya Medical Supplies Authority (Kemsa) chief executive Jonah Manjari and commercial director Eliud Muriithi bypassed the finance director and made payments to some Covi-19 millionaires.
• Kemsa Finance director Waiganjo Karanja told MPs that some payments in the Sh7.8 billion Covid-19 related procurement were done between Mr Manjari and Mr Muriithi.
• Mr Karanja told the committee chaired by Mvita MP Abdulswamad Nassir that: “Voucher preparation could not bypass me but some payment at the time could bypass me.

Suspended Kenya Medical Supplies Authority (Kemsa) chief executive Jonah Manjari and commercial director Eliud Muriithi bypassed the finance director and made payments to some Covi-19 millionaires, Parliament heard Tuesday.

Kemsa Finance director Waiganjo Karanja told MPs that some payments in the Sh7.8 billion Covid-19 related procurement were done between Mr Manjari and Mr Muriithi.

“Some payment was done between the CEO and Mr Muriithi and the CEO and myself,” Mr Karanja told the Public Investments Committee (PIC).

Mr Karanja told the committee chaired by Mvita MP Abdulswamad Nassir that: “Voucher preparation could not bypass me but some payment at the time could bypass me.

He said for payments to be made, it would be done with signatories of either the CEO and the finance director or the CEO and the commercial director.

Mr Nassir demanded to know if Mr Manjari and Mr Muriithi would decide who to pay.

“That would happen but the voucher would have been prepared by the finance department,” Mr Karanja said.

Ruaraka MP Tom Kajwang asked Mr Karanja to prepare analysis of funds out of the Sh7.8bn that he signed out together with Mr Manjari and those that Mr Muriithi signed together with the CEO.

Kemsa managers also admitted that procurement of Covid-19 related items was fabricated as only goods worth Sh1.1 billion out of a stock of Sh7.8 billion had been sold despite purchases made a year ago.

Mr Edward Njoroge, the acting chief executive officer, said Kemsa procured goods in excess of what was required for the pandemic.

“I agree that the procurement may have been fabricated. We purchase goods worth Sh7.8 billion and to date we have sold goods worth Sh1.1 billion,” Mr Njoroge told PIC.

Mr Njoroge said Kemsa procured goods urgently at the time the pandemic hit Kenya in March 2020.

“The idea was that we were to prepare for Covid-19. The plan then was to buy and distribute to counties. There was a presidential directive,” Mr Njoroge said.

Asked by Mr Nassir if the procurement was as a result of a fabricated agency, Mr Njoroge said the procurement was undertaken on an emergency basis. “I stand guided and I would say this was fabricated procurement,” he said.

The committee is scrutinising a special audit found that Kemsa rejected discounts by suppliers of Covid-19-related items in what has cost taxpayers loss of up to Sh2.3 billion.

A forensic audit by the Office of the Auditor-General found that Kemsa officials chose to pay Sh4,500 for a pack of 50 face masks, way above the Sh3,183 quoted by suppliers — a variation equivalent to 41.37 percent.