Six years, the Ksh.5B Afya House scandal culprits still remain free

The story first broke on a local daily late October 2016; billions had been paid out via the manipulation of the Integrated Financial Management System (IFMIS).

A leaked internal audit report revealed Ksh.5 billion was stolen in the 2015/2016 financial year.

Two transactions in particular stuck out; one was funds that went to a company owned by the family of a former high ranking official in the Ethics and Anti-Corruption Commission (EACC).

The other single largest recipient of funds was Estama Investments Ltd, which got Ksh.200 million.

According to reports, Estama was paid the Ksh.200 million from the free maternity kitty on June 30, 2016, the same day the procurement decision was made.

The scandal also involved the diversion of Ksh.889 million meant for free maternity at county and referral hospitals.

In some cases, the IFMIS platform was manipulated and double payment of goods was made.

For instance, the auditor report revealed Ksh.265.7 million was paid to Co-operative Bank of Kenya for the supply of “food and rations.”

The report went on to say; “The Co-operative Bank of Kenya cannot be a supplier of food and rations and hence the real payees were not disclosed. The payment vouchers were not availed for audit in order to establish who the bank was instructed to pay.”

These revelations necessitated both internal and external scrutiny at the Ministry of Health, that at the time was under the leadership of Dr Cleopa Mailu.

He was 10 months into his new position of Health Cabinet Secretary when the scandal broke, though much of the siphoning of funds took place under his predecessor James Macharia.

Dr Mailu and his Principal Secretary Nicholas Muraguri were summoned before the National Assembly Health Committee, the Senate Health Committee and the EACC.

“These companies are entities which can be verified, and whose owners have come forward,” Dr Mailu told Parliament then.

At the time, the ministry was seeking to transfer the auditor who blew the whistle on the irregular payments.

The man who uncovered the multi-billion-shilling scandal at the Health ministry is certified fraud examiner Bernard Muchere.

He had worked in the public service for 32 years, 26 of them as an auditor carrying out forensic audits in various ministries and state departments.

And it was his findings that would draw criticism from the public and political class.

Then opposition leader Raila Odinga called out President Uhuru Kenyatta over the scandal.

“This scandal is President Kenyatta’s scandal and he should deal with it as such. He should tell the country what he knew and when he knew it,” Odinga said.

In his statement, Odinga said one of the companies that benefitted from the transactions was associated with the President’s extended family members, while another was associated with his close friends and confidants.

The President, a week before Odinga’s press conference, expressed his frustration in dealing with corruption.

“How many cases are before the courts of law? Now do you expect me to go and set up a firing squad at Uhuru Park so that people can be happy?” He posed.

In December 2016, the whistle-blower Bernard Muchere was among 17 auditors moved in changes that thenTreasury Cabinet Secretary Henry Rotich said were prompted by the promotion of senior internal auditors in the Education ministry.

In 2018, a new development in the investigations came when Auditor General Edward Ouko confirmed most details of the 2016 infamous Ksh.5 billion Afya House scandal.

Ouko said the ministry could not account for Ksh.1,010,739,793 because of unavailable payment vouchers and other related supporting records.

The report vindicated the former head of internal audit in the Ministry of Health, Benard Muchere, but did little to effect any arrests.

Fast forward to 2020, when current Health Cabinet Secretary MutahiKagwe made the radical decision to “bring down the cartels” at the ministry.

At least 30 officers were moved from Afya House offices, as investigations were still underway.

“Please be a bit more patient during the fight against cartels. Cartels are not beaten overnight, they fight back,” said CS Kagwe then.

By January this year, the CS added that loopholes that the cartels have been using were being sealed. This followed the 2020 KEMSA scandal where irregular expenditure of Ksh.7.8 billion was revealed.

But six years on, the Afya House scandal culprits are yet to be brought to book.

That’s your National Reminder, lest you forget.