More on Afya house scandal

News & Politics
1

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Ordinarily I would not be online on a Sunday posting stuff but this issue of the Afya House Scandal is very painful. I have just listened to Ministry of Health CS Dr. Cleopas Mailu giving a convoluted press conference on the issue and it raises serious doubts on the Ministry’s credibility.

  1. The CS claims that the KShs 265.8m paid to Cooperative Bank was to pay for a letter of credit for the supplier to secure the goods. He claims this is a standard procedure. Really? There is no way the person procuring goods can be the one to pay for letter of credit on behalf of the supplier. A letter of credit is an issue to be handled by the supplier and their bank and the procuring entity has nothing to do with it. In this case it is clear that the Ministry financed the supplier to supply the goods which is irregular and criminal. This is not something that should be allowed to pass in the name of standard procedure. Other government suppliers are often asked to provide performance bonds not provided funds to secure an LC
  2. The Ministry admits to procuring 100 container clinics at a cost of KShs 10 million each. It has paid KShs 800m and a balance of KShs 200m is yet to be paid
    (a). Why would a container cost KShs 10m? It would even be cheaper to just build the clinics
    (b) Health is a devolved function. Why is the Ministry taking over the function through the backdoor? Who asked for these clinics and who will pay for their running operations when county governments are unable to even pay salaries for health workers
    (c) These containers procured in July 2015 are yet to be distributed. The Minister claims that they are preparing the grounds where they will be taken. Can the Minister provide a list of the 100 sites where they will be taken?

I feel disappointed at the useless questions the journalists are asking but then again they could be working under the influence of bahashas. However they spin issues clearly this is a very serious scandal. The stones involved are too heavy to turn. The truth will be out soon and it will be ugly. The Minister’s body language says a lot. He does not believe the things he is saying. The way the PS initially reacted to the issue by threatening the journalist against disclosing it shows there is a lot to hide.

2

ya kwanza umeng’oa. Letter of Credit is issued by customer to cover for the supplies in case s/he fails to pay.

3

Re-read that scenario.

4

That guy is wrong on issue #1. This is how LCs work.

1.Customer wants to buy goods from a supplier. In most cases the supplier is overseas.

2.Customer approaches bank and arranges for a letter of credit.

  1. Customers account is locked for an amount equivalent of the value of goods.

  2. Customers bank notifies the supplier’s bank that an LC is in place.

  3. Supplier sends goods to customer.

  4. Goods arrive and customer inspects to check whether they meet the specifications ( quality and quantity).

  5. Customer notifies bank that everything is OK.

  6. Bank sends money to suppliers bank

  7. LC file is closed.

5

So it works like Escrow

6

Umeona zile container clinics?

7

Exactly

8

apana

9

Ziko kwa nys Mombasa,yenyewe wanakula but the auditor general should table facts only ,

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Now, input that in a tender scenario where there are 3 parties.

  1. Tender issuer.
  2. Tenderpreneur
  3. Supplier.

Does the tender issuer get the L/C to pay the supplier or does the tenderpreneur?

11

nkt! this thirikali ma ngai!! I love all the infrastructural projects on going bt on this issue of corruption uhunye gets a big 0. This will be his biggest achiles heel as he bids to get re-elected. As of now I will not vote for the guy,unless he proves his worth by jailing these guys who eat nyama left right and center. I dont care if he shots them or becomes the judge…the system is too rotten n must be cleansed. rant over

12

I read somewhere that each clinic will be set in a 40-foot container, with two consultation rooms, a laboratory, a pharmacy and a tent as a waiting area.
COULD be the reason why it costs 10M a container, but guys with Bunge la Wananchi mindsets won’t consider that.

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And what exactly is he supposed to do? don’t get me wrong, I’m not trying to defend him. I am just wondering, the days of an imperial supreme president who can make roadside declarations are long gone. What avenues are left to curb this looting?

14

Mbisha wakanyak?

15

Are the suppliers going to equip these containers?
If not, then this is massive thievery!
A 40 foot container goes for utmost 300k.

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In a tender scenario, the tenderpreneur is the one to open the LC.

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He is the president.That in itself is enough…moreso he has the goodwill from kenyans. let him point the direction and we will support him,just like he did with security. Crying like a baby infront of the country is not helping anyone

18

10M could be the total cost of purchase of the container, shipping cost and stocking up with supplies.

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Nimeziona kwa ntv news za saa tatu,nyikal hata ameshindwa kuongea

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No. That’s not possible. What will the citizens do? Mass action?
I’m asking about an implementable constitutional backed plan.