This archive report was first published on 27 November 2019.
On November 27, 2019, the Senate ad hoc committee probing the Managed Equipment Services (MES) project uncovered details of the Ministry of Health's hasty procurement of Sh38 billion medical equipment leased to counties.
Acting National Treasury CS Ukur Yatani revealed that the ministry had initially planned to procure the equipment through a public-private partnership (PPP), but instead opted for an open tendering process.
Yatani explained that the tendering process was faster, but the ministry's decision was deemed unprocedural.
According to Yatani, the ministry informed the Treasury on June 22, 2015, that they had an alternative plan, effectively terminating the relationship between the two entities regarding the project.
Yatani absolved the National Treasury of blame, stating that the ministry had pulled out before the Treasury could conduct a feasibility study on the project.
However, the PPP manual requires a feasibility study, which is approved by a PPP committee before evaluation and financial risk assessment, after which the procurement is approved.
Isiolo Senator Fatuma Dulo, chairing the committee, questioned Yatani's role as the custodian of public money, emphasizing that he should have ensured the prudent use of funds released for the equipment.
