Ministry of Health says audit figures grossly exaggerated

The Ministry of Health says the audit figures on the alleged misappropriation of the Sh5 billion are grossly exaggerated.

In its final audit report, the Ministry points out that the wrong methodology was used and that no queries correlates to the monies allegedly lost.

“The overview of our reply to the Audit Queries is that there was gross exaggeration of the figures involved; as well as application of inappropriate methodology. There is no figure of Sh5 billion that correlates with the audit queries raised by the Internal Auditor,” a statement from the Ministry stated.

According to the report, the total amount of resources that are subject of the Interim Audit Report is 3 billion which was spent in accordance with the law and for the intended purposes.

“We also note with concern that the Interim Financial Audit Report was not put through the standard internal processes that any interim audit report must go through. The same was made public even before the specific audit queries had been discussed and responses and reconciliations provided,” it stated.

It pointed out that the figure of Sh5 billion is not accurate and indicated that it is misleading.

“As the enclosed Comprehensive Response and Reconciliation shows; the Ministry has provided complete responses and reconciliations of every financial Audit Query raised by the Internal Auditor. We are confident that the findings of the Office of the Auditor General will put this matter to a rest.”

Health Cabinet Secretary Cleopa Mailu had dismissed claims that firms named in the scandal were favoured, following revelations that some were owned by individuals related to the President.

Mailu stated that all Kenyans have a right to transact business with the government unless there is direct conflict of interest as clearly stipulated by law.

He was responding to questions from reporters that some of the companies-some associated with President Uhuru Kenyatta’s relatives or close friends were favoured in getting lucrative contracts at the Ministry of Health which is has come under sharp focus since last week.

Some of the companies include Sundales International Limited whose Managing Director Kathleen Kihanya admitted receiving Sh41 million for a supplies contract.

Mailu, who addressed the second press conference since the matter came to the public domain, said he will appoint an independent auditor to re-look at all contracts at the ministry in the 2015/16 financial year.

Deputy President William Ruto, who spoke at a public function separately, has also defended President Kenyatta’s sister saying she had every right to transact business with the government.


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