It has been a tale of unending pain for county bosses and haemorrhaging public coffers that bound the county governments to a seven-year contractual obligations which ended in May this year.
Majority of the governors have declined to sign a Sh5.2billion three-year extension that the Ministry of Health committed to without their involvement, just like in 2015 when the lapsed Sh63billion deal was signed at State House Nairobi.
The National Assembly has moved to approve the allocation piling pressure to the governors coupled by the cabinet approval through the ministry of health to extend the deal, The Informer can authoritatively reveal.
Yesterday, the Council of Governors through a full council resolution chaired by Kirinyaga governor Anne Waiguru demanded the MES deal be revised.
They also demanded the extension of contracts for 9,000 Universal Health Coverage (UHC) employees whose contracts end in May 2023.
“The council approves the continuity of the MES project, subject to the key minimum conditions being met.” Waiguru said.
They demanded immediate stoppage of procurement of medical equipment for county governments by the national government.
In September 2020, the Senate Ad-Hoc committee in its report ruled that MES project was a good idea that was badly executed.
“The Committee observes that MES is a classic case of a good idea executed badly. It is without doubt that there are gains to be made from the MES Project. The MES project being on its fifth year, the Office of the Auditor General should undertake an urgent audit of the entire project including how the funds so far paid by Counties have been used, the state of the equipment and the extent to which the project has met its objectives, and recommend to the Senate on the best way forward. This audit should be undertaken immediately and report back to the Senate within 6 months from the date of this resolution.” The ad-hoc committee report seen by The Informer reads in part.
Governors argue that they are running at losses as the equipment they earlier purchased and paid for was lying idle.
“As a council, we have also called on the Health Cabinet Secretary not to sign any fresh deal that will compel counties to use taxpayers’ monies,” Njuki affirmed during a retreat the committee’s retreat in Diani.
Further, the MES project was controversially shifted from a Public Private Partnership (PPP) initiative to direct procurement.
“The MoH initiated the MES Project under a PPP model in consultation with the National Treasury in 2013. The MoH subsequently terminated its relationship with the National Treasury under the PPP model in an unprocedural and irregular manner, the timing of which was suspect as it coincided with the stage at which a feasibility study was set to be conducted in accordance with set PPP procedures. The legal framework upon which the MES project was ultimately undertaken was the Public Procurement and Disposal Act 2005 (now repealed), and the Public Procurement and Disposal Act (Regulations) of 2006. The circumstances under which the project shifted from a PPP to a public procurement remain unclear.” The report adds.
Further, the variation of the contract value was effected without involving the county governments from Sh95 million at the start of the program to Sh200 million in the FY 2018/2019.
It was further varied to Sh131 million in the 2020/2021 financial year.
According to records in our possession, MOH made justification for expansion of the MES Project to include an additional 21 hospitals at a contract sum of Sh3.7billion, procurement of the failed HCIT solutions at a contract value of Sh4.8billion, procurement of laboratory equipment at an estimated cost of Sh1.1billion and service level monitoring and administration at a cost of Sh99million.
The contracts were segmented in seven lots; theatre equipment, theater, CSSD equipment, laboratory equipment (category 1), laboratory equipment (category 2), renal equipment, ICU equipment and radiology equipment.
The services providers were five international companies represented by respective contractors.
They included Esteem Industries Inc. (India) and subcontractor, Debra Limited (Kenya) for Lot 2; Bellco SRL(Italy) and subcontractor, Angelica Medical Supplies Ltd for Lot 5; Shenzhen Mindray Biomedical Electronics Co. (China) for Lot 1; Philips Medical Systems Nederland BV and sub-contractor, Philips East Africa Ltd for Lot 6 and GE East Africa Services Ltd for Lot 7.
However, according to official records, tender for Lot 3 was awarded to M/s Systemex Eorope GMBH but the Ministry of Health now headed by Cabinet Secretary Susan Nakhumicha says the company declined the offer rendering Lot 4 bids be declared non-responsive.
The deal was signed at State House in 2015 with five contractors in presence of retired president Uhuru Kenyatta.
