Auditor General Defends Report on Ksh.104B SHA IT System Scandal
Auditor General Nancy Gathungu has stood by her report exposing procurement irregularities in the Ksh.104 billion Social Health Authority (SHA) healthcare IT system, insisting that her findings are accurate and credible.
Appearing before the Senate County Public Accounts Committee (CPAC) on Tuesday, Gathungu clarified key audit concerns, revealing widespread illegalities in the procurement process.
Despite pushback from some government officials questioning her report’s validity, she remained firm.
“The findings in my audit report are conclusive—there was no compliance with the law, and the system was ineffective,” Gathungu stated.
She further highlighted alarming issues with the payment structure, where service providers deduct 2.5% of member contributions, amounting to Ksh.10 billion monthly.
“The governance framework is flawed, risk management is absent, and internal controls were ignored, leading to these problems,” she added.
CPAC Chair and Homa Bay Senator Moses Kajwang’ condemned the scheme, calling it a “special looting vehicle disguised as a procurement system.”
Nairobi Senator Edwin Sifuna also criticized the deductions, noting that an additional 1.5% is being taken under a ‘track and trace’ charge.
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Lawmakers pushed for the cancellation of the SHA contract, questioning why Gathungu’s report stopped short of recommending criminal prosecution.
“We cannot allow people to benefit from corrupt deals. Let’s just declare SHA a criminal enterprise,” Sifuna urged.
Gathungu responded, emphasizing that Parliament holds the power to take action on audit reports.
“Accountability lies within Parliament. The public should follow the chain of responsibility,” she explained.
The report uncovered multiple procurement breaches, including:
✅ Non-competitive tendering
✅ No clear payment agreement
✅ Unfair contract terms
✅ Lack of risk assessment
With mounting pressure, MPs are now calling for urgent action against those responsible for the SHA procurement scandal.
Auditor General Defends Report on Ksh.104B SHA IT System Scandal
