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Auditor General Reveals Damning Details of How Sh5Billion Was Misappropriated At Afya House


A new report by the Auditor General Edward Ouko has revealed more damning details over the Sh5 billion Afya House scandal that hit the Ministry of Heath in 2016.

In the report, Ouko has put on the spot the Ministry paid Sh800 million for the procurement of some 100 portable clinics before they were installed, commissioned and handed over.

“This was a flagrant violation of the contractual agreement,” Ouko said of the move.

The whistle blower, former head of internal audit in the Ministry of Health, Benard Mucher was redeployed to the headquarters in what was seen as a punitive move for blowing the whistle on the scam.

The lucrative tender for portable clinics was awarded to Estama Investment Limited at a cost of Sh1 billion.

While the portable clinics lie idle at the NYS yard in Mombasa since they were procured in 2015, Ouko says the contract has elapsed without being executed.

“Information available indicates that the containers were stored in government premises in Mombasa despite the fact that ownership has not passed to the government. Consequently, it has not been possible to determine whether the government obtained value for money for the expenditure of Sh800million,” Ouko stated.

Also confirmed by the Auditor General is the diversion of funds against the law with the biggest casualty being free maternity – President Uhuru Kenyatta’s flagship project.

For instance, some Sh200 million that was meant for the free maternity programme by county governments was wired to Estama. Sh16, 792,222 and Sh27, 891,647 that were also meant for the maternity scheme was diverted for the upgrading of Nanyuki District Hospital and Rehabilitation of Embu Provincial General Hospital respectively.

The Auditor General further revealed that the ministry cannot account for Sh1,010,739,793 because of unavailable payment vouchers and other related supporting records.

Ouko however says that a special audit of the Ministry of Health ordered by Parliament in 2016 is still underway.


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