'I doubt the Auditor General's report' Sossion says on SHA ownership shocker

Sossion claims that AG Nancy Gathungu's report grossly misrepresented facts and was intended to tarnish the State's image.

"I doubt the Auditor General. Quite a number of facts will not fall in place," he said on Citizen TV.

The ex-legislator maintained that the Ministry of Health should be allowed a right of reply, adding that the truth will be revealed upon completion of Parliament's oversight.

"You are entertaining the report of the Auditor General, you are not entertaining the response from the Ministry," he argued.

"Have you sought for it? We cannot give the country one side of information and then magnify failure. The truth will fall in place."

Gathungu's report raised serious concerns about the government's decision to proceed with the project without first establishing ownership of the system's infrastructure and intellectual property.

This arrangement means that Kenya's contributions to SHA and claims from health facilities will be used to fund a system that the State does not own, which the Auditor General describes as posing a significant risk to public funds and healthcare delivery.

"The system was procured through Specially Permitted Procurement Procedure but was not included in the procurement plan nor the medium-term budgetary expenditure framework," Gathungu wrote in the report.

To add to the controversy, she added that the procurement process did not include competitive bidding, instead sourcing the contractor directly through a Specially Permitted Procurement Procedure, a clear violation of Article 227(1) of the Kenya Constitution 2010. 

Despite the significant financial implications, the model lacks a supporting baseline survey, raising questions about its viability and the possibility of increased healthcare costs for citizens. 

“The projected revenues include 5% to be deducted from claims made by health facilities, which has the effect of increasing healthcare costs indicative of a service charge of 5% to citizens every time they access healthcare services,” Gathungu observed in the report. 

The project's financing model anticipates Ksh.111 billion in revenue over ten years, derived from SHA member contributions, health facility claims, and track and trace solution charges. 

Beyond the procurement disaster, the Auditor General's report highlights broader management failures, such as noncompliance with employment laws and insufficient staffing for people with disabilities.

“Review of the payroll indicated that three hundred and eighty-six employees earned a net salary of less than a third of their basic salary, contrary to Section 19(3) of the Employment Act, 2007,” Gathungu revealed.