National Assembly’s PIC-SSAA probes KEMSA over audit gaps, loss public funds

National Assembly’s PIC-SSAA probes KEMSA over audit gaps, loss public funds

𝟐𝟕𝐭𝐡 𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫, 𝟐𝟎𝟐𝟒.

The National Assembly’s Public Investments Committee on Social Services, Administration, and Agriculture (PIC-SSAA), chaired by Hon. Emmanuel Wangwe, convened to interrogate the Kenya Medical Supplies Authority (KEMSA) over its audit reports for FY 2019/2020 to 2021/2022. KEMSA’s CEO, Dr. Waqo Ejersa, Acting Finance Director Ms. Pauline Jepkemoi, Acting Legal Director Mr. Evans Cheruyot, and other officials faced questions on procurement flaws and financial mismanagement.

The Auditor-General's reports highlighted losses amounting to millions. Notably, the FY 2019/2020 financial statements reported net sales of Kshs. 1.8 billion, including expired drugs worth Kshs. 120 million.

KEMSA attributed some losses to transitioning from a "PUSH" to a "PULL" supply model, where counties now order specific supplies. Dr. Ejersa explained, “Some commodities have low demand, resulting in expiries.” Despite measures like donating near-expiry drugs and adopting a "First Expiry, First Out" policy, wastage persists.

Maragua MP Hon. Mary Wamaua questioned accountability: “When you donate drugs, how do you prevent counties from falsely claiming purchases? This loophole could fuel corruption.”

The Committee also scrutinized a Kshs. 19.3 million overpayment to Timeless Courier Services. “How did KEMSA overpay Kshs. 19 million without due diligence?” Hon. Wamaua asked. KEMSA stated the matter is under arbitration, with the courier firm holding an unpaid claim of Kshs. 14.9 million.

Further concerns arose over KEMSA's land valuation. Financial statements listed land worth Kshs. 158 million, yet ownership documents were missing. Ag. Legal Director Mr. Cheruyot struggled to clarify, prompting Hon. Wambugu (Othaya) to demand title deeds and valuation reports in the next session.

Hon. Wangwe warned, “This committee will not tolerate misuse of public funds.” The inquiry continues tomorrow.