KEMSA refutes auditor's report on loss of funds

Kenya Medical Supplies Authority (KEMSA) in Industrial Area, Nairobi [Elvis Ogina,Standard]

Kenya Medical Supplies Authority has refuted allegations of misappropriation of funds as raised in a report by the Auditor General.

In a statement issued to the press, the new KEMSA CEO, Dr Waqo Dulacha Ejersa, said the issues raised and highlighted in the report for the Financial Year 2022/2023 are inaccurate, non-factual and misleading, which misrepresented activities implemented during the said period.

Ejersa also defended the agency over claims that it spent Sh9 billion on distributing cancer drugs to private hospitals.

He also revealed that in 2003, MAX Foundation signed an agreement with the government on treating chronic Myeloid Leukemia using Glivec.

“This treatment is done in highly specialised facilities, which can offer routine treatment to patients. It partnered with doctors and Nairobi Hospital management to ensure patients with Chronic Myeloid Leukemia (CML) and Gastrointestinal tumors receive the anticancer drug free of charge, for over 20 years,” read the statement in part.

The statement also noted that in 2021, the Max Foundation agreed to decentralise the service to four public facilities including the Moi Teaching and Referral Hospital in Eldoret, Coast General Hospital in Mombasa, Nakuru Provincial Hospital in Nakuru and Jaramogi Oginga Odinga Hospital that is situated in Kisumu.

The Ministry of Health, through the National Cancer Program, the CEO revealed, identified the above cancer centres as the most appropriate, given the availability of the necessary human resources, the required systems, and regional distribution to allow patients to receive the service closer home and avoid long journeys for medical services.

However, he added that the majority of the patients opted to be treated at The Nairobi Hospital while others have been transferred and enrolled at the four public health facilities.

KEMSA has also refuted claims that it supplied Kshs 572 million to non-existent health facilities

The agency states that the said the centralised stores in question were created as delivery points for distributing healthcare products to counties during the Covid-19 pandemic.

 “Many of these were created during Covid-19 when counties wanted to create a centralized store,” stated the statement.

On the issue of billing, the Authority stated that all ARVs are distributed free of charge through funding from development partners - including the Global Fund and USAID refuting reports on supplies being billed to counties and the Ministry.

On the diversion of maritime personnel supplies to health facilities, KEMSA says the health ministry had instructed it to procure both ARVs and vaccines under one Authority to Incur Expenditure  (AIE).

“Due to the nature of the AIE, these were captured in KEMSA under NASCOP commodities and were partially issued. KEMSA continues to follow up with MOH for the full distribution list,” read the statement.

KEMSA, however, acknowledged loss of Kshs168m in Global Fund change of procurement of Long Lasting Insecticidal Nets (LLINs)

“This was lost revenue from procurement fees when Global Fund changed the procuring entity from KEMSA to Wambo.org. However, KEMSA still has the function of warehousing and distributing the nets to the last mile where it is earning fees,” read the statement.