KEMSA CEO On The Spot Over Withheld Millions Owed To Contractors And Suppliers
Members of Parliament interrogated Kenya Medical Supplies Authority (KEMSA) Acting CEO Dr. Andrew Mulwa on Wednesday, requesting an explanation as to why the Authority still owes Ksh16 million to contractors and suppliers for work completed in 2013.
Speaking before the National Assembly Public Investments Committee on Social Services Administration and Agriculture, the Acting CEO defended the nonpayment of dues by stating that the Public Works Department had not provided KEMSA with completion certificates indicating that the contracted-for works had been completed.
The Interim CEO also asserted that neither the contractors nor the suppliers have claimed payment.
As such, Kwanza MP Ferdinand Wanyonyi sought to determine why KEMSA had not declared the funds to the Unclaimed Assets Authority or even attempted to contact the contractors and suppliers to whom KEMSA owes money for more than five years.
Mary Wamaua, a representative from Maragua, wanted to know if the initiatives had been initiated and if KEMSA had attempted to determine their status.
The lawmaker also instructed the CEO to inform the Committee of where the funds had been deposited and whether they were accruing interest.
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KEMSA Finance Manager Waiganjo Karanja, defending the agency, assured the Committee that no funds had been misappropriated and that contractors and suppliers would be paid in due time.
“Chair, the money is kept in the KEMSA operations account. It earns interest that is usually declared, and it supplements the running of our operations”, Waiganjo added.
The Finance Manager promised that he and the Interim Chief Executive Officer would contemplate contacting the Unclaimed Financial Assets Authority if they were unable to locate the contractors and suppliers who were owed the money.
Karanja told the Committee that KEMSA had not contacted the Public Works Department to determine whether or not the works had been completed.
“The Acting Chief Executive officer Dr. Mulwa further informed the Committee that KEMSA was experiencing challenges in terms of officers to follow up with the concerned contractors and suppliers”, read a dispatch released by the committee.
In conclusion, the Interim CEO pledged to address the issue and ensure contractors and suppliers are paid on time.
KEMSA CEO On The Spot Over Withheld Millions Owed To Contractors And Suppliers
