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Health ministry hit by shs7 billion scandal, Mps describe the deal as a major rip-off
A CT scan costs between Sh40-45 million at the current market prices, but the Ministry of Health procured each at a whooping Sh227 million in a deal described by MPs as a major rip-off.
By Kevin Kyalo
NAIROBI—The health Ministry is on the spot once again after been hit by a new shs7 billion scandal in the procurement of CT scanners.
The details of the scandal emerged when Health Principal Secretary Peter Tum appeared before the Public Accounts Committee (PAC) on Monday to explain the 2015/16 expenditure and revenue accounts of the ministry.
Mr.Tum revealed that the ministry issued a fresh tender to a Chinese firm in a government to government agreement for the purchase of 37 CT scanners at ksh8.4 billion.
“The CT scans are part of the family of imaging machines and a CT scanner should be one of them,” noted the newly appointed health CS.
In the deal, the Kenyan government contributed Sh1.7 billion under the agreement of economic and technical cooperation signed between the China Development Bank and the National Treasury, which translates to 20 per cent of the total cost. The Chinese government was to foot the remaining 80 per cent of the cost.
The PS however said the ministry had planned to procure the scanners under a totally different framework and noted that the unit cost included construction of new building, air conditioners, special thermal film printer, report printer, warranty and spare parts for five years.
He agreed that the scanners fall in the same category as imaging equipment covered in the MES, but funding may have been lacking.
Members of the The National Assembly PAC chaired by Ugunja MP Opiyo Wandayi raised questions on the procurement. They said the scanners should not have been procured as they fall under the same category of the medical equipment the government acquired at a cost of Sh42 billion and leased to counties in 2015.
They put the cost of a scanner at about Sh40 million, suggesting the machines had been overpriced four times to benefit senior government officials in the ministries of Health and National Treasury.
“Why are CT scanners treated differently from the MES? Someone can conclude that the reason it was not included in MES was to create room for future rip-off of public funds,” said Mr Wandayi.
Tongaren MP Eseli Simiyu demanded to know why the ministry paid for the MES and scans yet they were not budgeted for, which he said violated the requirement of the Public Finance Management Act.
The MPs said it will require Treasury Cabinet Secretary Henry Rotich to explain the circumstances under which payments were approved.
