An uncommon review by the Auditor General has demonstrated that Kenyans lost Sh2.3 billion in the Covid-19 things procurement scandal at Kemsa.
In an unstable report introduced to a Senate Committee on Wednesday, the Auditor General Nancy Gathangu prosecuted the administration of Kemsa for disregarding different laws prompting loss of public cash.
The report additionally uncovers extortion in procurement and agreement between Kemsa supervisors and the organizations that were granted multi-billion pushing contracts
According to the auditor, Kemsa over procured items with Sh6.3 billion which are still lying idle in its warehouses.
The report shows that Kemsa illegally and irregularly diverted monies meant for UHC to purchase Covid-19 items without approval of the Ministry of Health.
“During the period under review, Kemsa irregularly utilised Universal Health Coverage and Capital Budget to procure Covid-19 related items worth Sh7,632,068,588 without evidence of approval of the budgets by relevant authorities,” she said.
“The procurement process was not initiated based on need assessment and planning resulting in over procurement of Covid-19 related stock worth Sh6.3 billion that is still being held at Kemsa warehouses.”
The auditor noted some of the companies that were awarded the contract were established in January and February this year, pointing to possible collusion.
“We established circumstances where Companies that had been in existence for less than one year, were awarded contracts to supply Covid-19 e.g Kilig Ltd and Shop ‘N’ Buy Ltd were registered on January 22, 2020, and February 14 2020 yet they were awarded contracts,” Gathangu said.