CS Mailu says ministry open to scrutiny over Sh5bn audit query

October 26, 2016 7:24 pm
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Mailu says the report is being treated with seriousness it deserves to ensure there is transparency and proper utilization of public funds/FILE
Mailu says the report is being treated with seriousness it deserves to ensure there is transparency and proper utilization of public funds/FILE

, NAIROBI, Kenya, Oct 26 – Health Cabinet Secretary Cleopa Mailu says the ministry is open to scrutiny over the unravelling Sh5 billion audit query as indicated by an interim audit report, leaked to media.

In a statement, Mailu says the report is being treated with seriousness it deserves to ensure there is transparency and proper utilization of public funds.

Without disputing the claims, the CS says Kenya National Audit Office is undertaking the audit of the ministry in the period of 2015-2016 financial year after which the real picture will be painted.

“The ministry wishes to assure the public that it’s treating the interim internal report with the seriousness it deserves and it is open to internal and external scrutiny to ensure transparency and proper utilization of allocated funds,” he asserted.

The leaked interim report reveals massive loss of public funds through diversion of funds, double payments of goods and manipulation of the Integrated Financial Management System, in a similar manner like that of the Sh791 million NYS scandal.

“We affirm that under no circumstances will the Ministry condone any acts of corruption and that the necessary action will be taken at all times to guarantee and preserve the value of taxpayer’s money,” he stated.

He also assured that the outcome of the report will be made public.

About Sh800 million is said to have been paid to Estama Investment Limited to supply 100 portable medical clinics but four months after the financial year ended, not a single clinic has been supplied.

According to reports in a local daily, the company was allegedly paid in three instalments the first being on June 27 where they paid Sh400 million.

Another company said to have received the diverted funds is Esaki Limited, associated with the former Ethics and Anti-Corruption Commission Chairperson Phillip Kinisu.

The company allegedly received Sh150.1 million.

The report further reveals millions of diverted public funds that jeopardize the free health maternity programme.

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