Health PS Mburu axed, Kemsa board overhauled as Sh3.7billion mosquito-net tender fraud bites
The first casualties of the alleged mega fraud involving Global Fund financed Sh3.7billion contract for the supply of 10 million treated mosquito nets were yesterday axed by president William Ruto even as the identity of the would be beneficiaries of the skewed process remained a closely guarded secret.
However, impeccable sources intimated to The Informer Media Group the propped-up greenhorn tenderpreneur is associated to one of the senior political offices in the country as first whiff of scandal emerges under Ruto’s nascent administration at the jinxed-like Ministry of Health (MoH)
Yesterday, the president fired Public Health Principal Secretary Josephine Mburu, suspended Kenya Medical Supplies Authority (Kemsa) Chief Executive Officer Terry Ramadhani and kicked out the agency’s entire board over procurement malpractices that saw Global Fund cancel the contract citing gross irregularities.
Through a communication made by the Chief of Staff and Head of Public Service Felix Koskei, Ruto appointed former Housing Principal Secretary and Farmers Party leader Irungu Nyakera as Kemsa board chair.
Others affected include; Those affected are Martin Wamwea (MoH), Lenson Kariuki (MoH), Pauline Duya (MoH), Livingstone Njuguna (MoH), Charles Kariuki Chege (MoH), Justus Kinoti (Kemsa), Cosmas Rotich (Kemsa) and Anthony Chege (Kemsa).
The Cabinet Secretary Susan Nakhumicha Health led docket is also facing graft allegations of possible embezzlement of at least $1.353 million (Sh185 million) by rogue Ministry officials from a donor-funded campaign that has left the government staring at refunds and potential sanctions from the Geneva-based Global Fund.
“The alleged maladministration on the part of Kemsa is with regard to procurement of treated mosquito nets for those vulnerable households, which could have led to significant exposure to the disease and increase its severity in the endemic regions.” Koskei said through a quick dispatch from State House yesterday.
Immediately after the president cracked the whip, Health Nakhumicha has now appointed Andrew Mutava Mulwa as acting Kemsa CEO to replace Ramadhani.
She also reconstituted Kemsa board and named Hezbon Omollo, Bernard Kipkirui Bett, Jane Masiga and Jane Nyagaturi Mbatia as new members of the Kemsa board.
The sweep at Kemsa and the Ministry of Health comes after it emerged that Kemsa bungled the billion-shilling tender for the supply of treated nets intended to help millions of low-income households prevent malaria, in a move that has also cost the State corporation at least Sh370 million in revenue.
The tender financed by Global Fund was to see the winning bidder supply 10.2 million treated mosquito nets but blunders by Kemsa have now seen the Geneva-based organisation demand action against officials who bungled its implementation.
Internal documents indicate that the Global Fund has now cancelled Kemsa’s procurement process which seemed flawed in favour of a bidder who did not meet mandatory requirements, at the expense of an actual mosquito nets manufacturer.
The documents further indicate that the only firm that met all requirements under both Kenyan and Global Fund procurement laws and guidelines, China’s Tianjin Yorkool, was unfairly knocked out of the tender evaluation.
Because of the scandal, Kenya now risks being blacklisted by the Global Fund, with the donor already threatening to cut its funding for the malaria programme in the 2023-2024 period.
In April this year, the organisation gave the Ministry of Health 60 days to give evidenced explanations on how a flagged Sh72.8 million portion of the donor funds were spent or refund the amount. The Global Fund is investigating a further Sh75.8 million spent, which it says involves “prohibited practices”. No details have been given on what the practices entailed.
An unspecified amount of the money was paid out through M-Pesa, and described as salaries in a bid to cover up the embezzlement, the Global Fund’s review shows.
Communication between the Global Fund and two Principal Secretaries – Josephine Mburu (Public Health) and Peter Tum (Medical Services) – indicates that the incident is not the Ministry of Health’s first tango with misappropriation of the donor’s money.
Some of the officials previously implicated in embezzlement and other funds misappropriation incidents are senior managers.
“There are staff who have been engaged in the prohibited practices in the past who continue to be engaged in the Global Fund grants. The same individuals are allegedly implicated in more fraudulent activities. These staff should be disengaged from the management of the Global Fund grants with immediate effect,” demanded the Fund.
