The Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA), chaired by Navakholo MP Emmanuel Wangwe, held a session with officials from the Social Health Authority (SHA) led by CEO Dr. Mercy Mwangangi to examine audit queries raised by the Auditor-General for the financial years 2021/2022 to 2023/2024.

The committee questioned the propriety of expenditures running into tens of millions of shillings, including unsupported board payments and irregular legal fees.

According to the Auditor-General’s report, the SHA Board incurred Ksh5.83 million on meetings not supported by signed attendance registers or board minutes.

In his remarks, Ndhiwa MP Martin Peters Owino condemned the expenditure, saying: “If you say that the Board was paid five million, this means many deserving Kenyans were denied an opportunity to be treated.”

The report further revealed that legal expenses amounting to Ksh247.8 million were included in the SHA’s financial statements, out of which Ksh91.6 million was paid for cases valued at only Ksh13.9 million an overpayment of Ksh77.6 million, contrary to Schedule 6(1)(b) of the Advocates’ Remuneration Order.

Wangwe questioned the rationale behind the massive legal payouts, asking: “Where is the value for money when you pay Ksh77 million to collect Ksh13 million?”

Nominated MP Bishop Kosgei criticized the SHA’s Finance Department, saying:

“The Finance Director has let down the CEO and the institution by failing to cooperate with auditors and provide proper responses.”

Also Read: Senate Pressures SHA to Clear Billions Owed to Counties

SHA Car Project Worth Ksh3.97 Billion

The committee also revisited the long-standing multi-storey car park project, whose cost ballooned from Ksh909 million to Ksh3.97 billion, a 337% variation from the original contract.

Although the Public Investments Committee had previously recommended that the Ethics and Anti-Corruption Commission (EACC) investigate the project, no progress report has been submitted.

Wangwe pressed for accountability, stating: “There were more than two payments on the car park which shot the budget by 37%. Make sure you tabulate all the transactions as documented in the books of account.”

Also Read: SHA Issues Advisory to Kenyans on Hospital Visits and Payments

Vice-Chairperson  Saboti MP Caleb Amisi expressed frustration over repeated excuses by public institutions, saying: “We are talking about billions of shillings of taxpayers’ money. The COVID-19 pandemic line is a tired excuse by government institutions that have embezzled public funds.”

Responding to the committee’s concerns, Dr. Mercy Mwangangi assured members that the Authority is undergoing reforms and is working with available documents inherited from the defunct NHIF.

“We are committed to accountability and transparency, and we have made significant reforms to address past weaknesses,” she said.

The committee directed SHA to provide missing documentation and to furnish evidence of cooperation with the EACC regarding the stalled car park investigation.

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A picture of SHA Office in Nairobi
Photo/SHA Website