By Samwel Owino,
NAIROBI Kenya
Senators have
questioned how a law firm that offered legal services to the Ministry of Health
in the execution of the Sh63 billion Managed Equipment Service (MES) project
was procured.
Afya House. Senators have questioned how a law firm that offered legal services to the Ministry of Health in the execution of the Sh63 billion Managed Equipment Service project was procured.
The Isiolo Senator Fatuma Dullo-led committee
has raised questions how the Ministry of Health then under CS James Macharia
resorted to restricted tender method in procuring the services of the law firm
to advise it on the MES project.
Bungoma Senator and the committee vice-chairman
Moses Wetang’ula questioned why Mr Macharia specifically went for M/S Isemeout
of a list of many other law firms kept by the Attorney General, who are
qualified to represent the government entities on various issues.
“The ministry should have written to the
Attorney-General requesting for a list of law firms qualified to help
government entities, and choose one. But in this case, the CS just picked Iseme
Kamau advocates,” Mr Wetang’ula said.
Documents before the committee indicate that the
scope of work of the law firm involved drafting, negotiating, amending and
finalising the inter-governmental agreement between the ministry and counties.
Of concern to the committee is that the law
firm failed to declare conflict of interest — one of the suppliers of the MES
equipment who got the largest share of the deal was their client, and it is
believed that they played a role in the awarding of the lucrative tender.
M/S General Electric East Africa Services,
which supplied radiology equipment worth Sh23.8 billion, is said to be a client
of the law firm.
The contract with the companies entailed
leasing of assorted medical equipment – renal, laboratory, ICU, radiology and
theatre equipment – to at least two hospitals in each of the 47 counties for seven
years. It also included installation of the equipment and training of technical
staff.
The committee is investigating whether the
public got value for money for the MES projects as various reports have
indicated that some of the expensive equipment are lying idle in counties due
to lack of qualified personnel to handle them.
The committee is also investigating how the
contract, which was initially valued at Sh38 billion, was later escalated after
variation to approximately Sh63 billion.
The committee is questioning why the law firm
signed a formal agreement in 2015 yet their scope of scope of work involved
drafting of the entire MES project, which was done in 2014.
Appearing for the law firm, Senior Counsel Paul
Muite said government agencies are allowed to pick a particular law firm to act
for them hence there was nothing illegal in M/S Iseme clinching the deal.
He also denied that the law firm had knowledge
of the suppliers and failed to declare conflict of interest that one of them
was their client.
The senior counsel said there was nothing
illegal in commencing work for the ministry before signing a formal agreement.
The committee is supposed to table its report on August 4.
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