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Court declines bid to suspend Kemsa board over cash theft claims

Thursday, August 27th, 2020 00:00 | By
Kemsa chief executive Jonah Manjari. Photo/PD/SAMWEL KARIUKI

The High Court yesterday declined to temporarily suspend the entire Board of Directors of Kenya Medical Supplies Authority (Kemsa) from office pending completion of investigations into the alleged loss of billions of Covid -19 funds.

However, Justice John Makau certified the application by businessman Kennedy Omondi Otieno as urgent and directed the case to be mentioned on September 8 for further directions.

Through lawyer Brian Khaemba, the petitioner also wants the court to bar the Kemsa board of directors from transacting any business on behalf of the State agency pending the ongoing probe over Covid-19 funds. 

“Unless this application is heard on priority basis and interim orders granted, the board is most likely to proceed with the planned meeting, do the re-organisation and frustrate the ongoing investigations by the Ethics and Anti-Corruption Commission,” argued Otieno.

He submitted that the continued stay of the board at Kemsa might interfere with investigations.

 “The continued operation of the board members will most likely  lead to interference with evidence on the ongoing investigations and prompt the donors to actualise their threats of cutting of funds, to the detriment of Kenyans,” says Otieno.

He adds: “The petitioner is now aware of a planned urgent meeting of the Board of Directors of Kemsa which was scheduled to take place on August 25, 2020, with the main aim of re-organising its human resource department by victimizing those who are deemed as whistle-blowers to corrupt deals at the agency,” reads the court papers.

He says that information on the mismanagement of donor funds at Kemsa was brought to light by whistle-blowers who are employees of the agency.

Due to its global magnitude, several donors, he said led by the World Bank responded by availing approximately Sh223 billion to enable the country meet various measures, key among them being the procurement of face masks, Personal Protective Equipment (PPE), ventilators, body suits and gloves.

However, in the recent days, Otieno said reports have emerged showing how Kemsa has embarked on unlawful spending spree of the donor funds by buying PPEs at inflated prices, utilising the donor funds to pay for items procured without the approval of the board and diverting large consignments of masks and ventilators donated by the international community to private entities.

President Uhuru Kenyatta has since directed investigations to be carried out on the claims so that all persons found culpable are prosecuted.

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