Kenya: KEMSA Revokes List of Pre-Qualified Suppliers to Tame Corruption

5 June 2023
Capital FM (Nairobi)

Nairobi — The Kenya Medical Supplies Authority (KEMSA) has revoked the entire list of pre-qualified suppliers so as to enlist new ones.

The announcement was made Monday during a press conference by new board chairman Irungu Nyakera, who announced a raft of other measures aimed at eradicating corruption at the agency.

"To strengthen our procurement processes and supply chain management to ensure efficiency, fairness, transparency and integrity we have immediately revoked the current list of pre-qualified suppliers and restart an objective process afresh to ensure that only companies that provide value for money are pre-qualified," he said days after he was named alongside other board members to replace the one that was dismissed alongside Terry Ramadhan who was KEMSA's Chief Executive Officer.

Ramadhani was sacked along with Health Principal Secretary Josephine Mburu over a Global Fund's Sh3.7 billion mosquito net scandal.

On Monday, the new board said acknowledged the pressing need for change within the organization that is still reeling from a Sh7 billion Covid-19 pandemic scandal that led to the sacking of Jonah Manjari from the CEO's position.

"Today, we address the recent concerns and unveil our comprehensive plan to eradicate corruption, enhance good governance, recapitalise the institution, re-engage with our strategic partners, re- purpose our engagement with County governments and uplift staff morale and productivity," the board said.

Over the past months, KEMSA has faced significant challenges that have undermined public trust and the board said it recognizes the impact this has had on the perception of our organization, and we take these concerns seriously.

And to address these challenges, the board "committed to investigating allegations of corruption and holding those responsible accountable for their actions."

"We are collaborating closely with relevant authorities to ensure a thorough and impartial investigation that upholds the principles of justice and transparency," it said.

Here are some of the reforms the new board said it is implementing:

  • PROCUREMENT PROCESSES:

Strengthening our procurement processes and supply chain management to ensure efficiency, fairness, transparencyand integrity. This includes :

  • Revoked the list of pre-qualified suppliers.
  • Immediately review all ongoing contracts that have been procured through single sourcing and monopoly action and are costly to the institution. Any contract that is found to not be providing value for money will be forwarded to the PPRA and the EACC for investigation;
  • Immediately review all framework contracts with aim of eradicating single sourcing, cartelization and monopoly action and ensure that items procured under framework contracting are henceforth procured under standard, transparent procurement practices.
  • Introduce the lotting system in procurement that will set an upper financial limit beyond which no single bidder will win contracts. This will promote healthy competition by diffusing vested interest and racketeering and thereby ensure value for money for Mwananchi from our procurement processes.
  • DIGITALIZATION:

Acquire and institute a new ERP system to establish organizational interconnectivity and improved the accountability of decision-makers within six months from June 5. This will help in increasing operational efficiency.

  • ENHANCED FINANCIAL CONTROL:

We are implementing stricter financial controls, regular audits and risk assessments, to detect and prevent any potential irregularities. We are committed to conducting a thorough review of our operational processes and identify areas for optimization. By streamlining workflows, implementing cost-effective measures, and leveraging technology, we will work towards reducing operational expenses while ensuring the uninterrupted supply of essential medical products to healthcare facilities across the country

  • HUMAN RESOURCE:
  • Review and audit the human capital of the organization within 4 weeks from today through a staff needs assessment and document validation with a view to retaining qualified staff and redeploying them in line with departmental needs. Staff on contract who cannot meet the requirements of the institution will not have their contracts renewed any further.
  • Directed the management to freeze staff recruitment scale down staff travel in the organisation with a view to re-orienting the budget to prioritise KEMSA's role in Universal Healthcare. All staff will therefore be henceforth be placed on performance contracts tied to to delivering on their roles.
  • We recognize that motivated and engaged employees are essential for achieving our goals. To this end, we are implementing comprehensive programs to improve staff morale, enhance their professional development opportunities, and create a conducive work environment that fosters teamwork, innovation, and excellence. We will actively listen to our employees' concerns and suggestions and create channels for open communication within the organization.
  • OPERATIONAL EFFICIENCY:
  • Eliminate accumulation of dead and slow-moving stock by prioritising the procurement of Vital Supplies, Tracer Items and Class A products that are urgently required by and regularly utilised in end-user health facilities.
  • Seek engagement with the Chair of the Council of Governors to seek their indulgence in processing outstanding payments owed by counties to KEMSA as well as working together to jointly roll out a system that identifies individual county needs and orders to enable KEMSA to plan ahead and stock the particular Tracer Items and class A products that meet the respective demand by the Counties. This will allow us to meet our target of 90% order fill rate;
  • Seek to recapitalize KEMSA by selling off current slow moving stock to realize working capital, seeking resources from the Ministry of Health, and working with development partners to ensure effective functioning of the institution.
  • Invite the Public Procurement Regulatory Authority (PPRA) to do an audit of KEMSA's procurement processes and give proposals of how improvements can be made to institutionalise best-practice as standard and thereby ensure efficiency and cost-savings to the Mwananchi through all KEMSA's procurement going forward.

Read the original article on Capital FM.

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