Following allegations of a new scandal at the Kenya Medical Supplies Authority (Kemsa), President William Ruto has made reforms. Daniel Rono, the former chairman of the Kemsa board, and his members were casualties of the reforms.
In the most recent scandal, a botched mosquito net transaction worth Sh3.7 billion put millions of low-income households in danger of catching malaria.
Also Read: New List Of Licensed Mobile Lenders In Kenya 2023.
This comes after the Global Fund canceled the contract, which could have brought in Sh370 million for Kemsa through logistics-related warehousing. The agency claims there were anomalies in the procurement procedure that tipped the scales in favor of one of the bidders, leading to the cancellation.
The technical evaluation committee report of Kemsa was criticized by the Global Fund audit, which pointed up numerous procurement flaws.
Additionally, it disqualified the award recipients, including Partec East Africa Limited and Shobikaa Impex.
Terry Ramadhani, the former CEO of Kemsa, defended the apparent absence of Shobikaa from the register of businesses database by claiming that it was an international business.
Shobikaa is an Indian company, according to Ramadhani, who also noted that the tender was an open international tender.
“The product is what is registered in PPB in Kenya. So of course you are not going to find it,” she added.
The Global Fund stated in its audit that the companies did not satisfy the necessary conditions and added that they should not have continued to the post-qualification step.
Currently, the Fund is attempting to incorporate the procedure into its internal procurement guidelines, depriving the nation of Sh600 million.
Read: Covid millionaires scam: Sh17 billion remains unaccounted for at Kemsa
During the Covid-19 outbreak, allegations of corruption and poor management against Kemsa first made the news.
KEMSA and the Covid Millionaires
Then, certain people who became known as the “Covid Millionaires” took home almost Sh7.8 billion.
At the height of the pandemic, the funds were meant to be used to purchase personal protective equipment (PPE) for medical staff, hospitals, and other crucial healthcare institutions.
Kemsa was charged with giving the Covid -19 contracts to businesses that had only recently been created.
Despite being founded in February 2020, Shop and Buy Limited received tenders for Sh1,370,000,000, according to documents provided to the Senate committee.
Weeks had passed before the nation’s first Covid-19 case was reported. The business denied doing anything improper.