The #Covid-19 (MITUNGI) funds report as tabled by Committee on Health

UNPROCEDURAL TRANSFER OF FUNDS FROM BUNGOMA REFERRAL HOSPITAL AND EXPENDITURE TOUCHING ON COVID – 19 MITIGATION AND OTHER FINANCIAL MALPRACTICES IN THE COUNTY GOVERNMENT OF BUNGOMA

In summary;

• Committee summons
• Committee General Observations
• Committee General Recommendations
• The Full Tabled Report

The Committee on Health today Wednesday, June 10,2020 tabled its report on Covid-19 funds transfer and utilisation.

Sources from the house indicate; The report will be adopted with an amendment on recommendation 4 to include a clause to direct the appointing authority (CEO 039) to revoke his appointment as acting chief officer finance and economic planning forthwith

Section 40 of the county governments act stipulates the procedure for removal of a CECM. The CECM Health and Public Administration are in trouble

Below is an extract from the report currently being debated in the house…

The Committee begun its sittings on the 30th March, 2020 in the plenary of the County Assembly to plan its activities and it did narrow down to the following public officers, among others who were then lined up for summoning and/or invitation pursuant to the provisions of Article 195 of the Constitution of Kenya, 2010 as read together with Part (v),
Section 18 of the County Assemblies Powers and Privileges Act, 2017;

1. M/s Esther N. Wamalwa-County Executive Committee Member County
Department of Finance and Economic Planning;
2. Mr.Richard Sabwami Keya-County Executive Committee Member County
Department of Public Administration Management and Public Service;
3. Dr. Antony Walela-County Executive Committee Member, County
Department of Health and Sanitation;
4. Mr. Jonathan Namulala-Ag. Chief Officer Finance and Economic Planning;
5. Mr. Patrick Wandili- Chief Officer Health and Sanitation;
6. Dr. David Wanikina-Medical Superintendent Bungoma County Referral
Hospital;
7. M/s Carolyne Buyela- Advisor on Special Programmes, Office of the
Governor
8. Mr. Martin N.Wafula-Advisor on Economic and Procurement Affairs, Office
of the Governor;
9. M/s Pamela Serut-Service Delivery Unit (SDU)-Office of the Governor);
10.Mr. Martin Wesonga- Bungoma County Referral Hospital Accountant;
Page 9 of 41
11. Simon Simiyu-Principal Liaison Officer, Department of Health and Sanitation;
12.M/s Noel Kusienya-(County Department of Finance and Economic Planning);
13.Mr. Geoffrey Wafula –
14.M/s Stella Puka-Human Resource Officer, Department of Public
Administration Management and Public Service;
15.Mr. Kizito Nyongesa – Accountant, Department of Finance and Economic
Planning;
16.Mr. Kevin Namulala – Personal Assistant to County Executive Committee
Member, Public Administration Management and Public Service; and
17.Rev. Canon Walter Wamalwa-Chairperson, Bungoma County Referral
Hospital, Management Board.

COMMITTEE GENERAL OBSERVATIONS

1. THAT, the initial idea and development of the concept paper for the awareness of the Corona Virus – Covid -19 originated from the Office of the Advisor on Special Programmes (M/s Caro Buyela)
2. The initial budget as proposed by the Office of the Advisor on Special Programmes (M/s Caro Buyela) of Kshs. 6,986,000 Million was approved by Page 31 of 41 the County Executive Committee Member for Public Administration Management and Public Service and there was no highlight of the facilitation of the County Assembly Members towards sensitization or training on Corona Virus – Covid -19.
3. 3. It was confirmed that indeed a sum of Kshs. 6,986,000 Million was borrowed from the Bungoma County Referral Hospital account through imprest system which was not properly authorized by the (AIE) holder as per Regulations 92 of the Public Finance Management (County Governments Regulations), 2015.
4. From the borrowed funds only Kshs. 1,055,046 has been remitted back to the Hospital Accounts.
5. Two of the Governors Advisors and one Governor’s appointee on Service Delivery Unit (SDU) were involved on the financial matters as imprest holders namely; i) M/s Carolyne Buyela – Advisor on Special Programmes, Office of the Governor ii) Mr. Martin N.Wafula – Advisor on Economic and Procurement affairs, office of the Governor; iii) M/s Pamela Serut – (SDU-office of the Governor);
6. The Accounting Officer Department of Health and Sanitation contravened Section 154 (1) Public Finance Management Act, 2012 and Regulations 22(2)(c) & (d)of Public Finance Management (County Governments Regulations), 2015 by requesting the transfer of the funds appropriated for Health Department to another County Government Entity without any written assurance from the borrowing entity. Page 32 of 41
7. THAT, the Bungoma Referral Hospital Medical Superintendent as Secretary to the Hospital Board and AIE Holder did not seek for the approval of the Bungoma County Referral Hospital Management Board.
8. THAT, in imprest management as per the Public Finance Management Act, 2012, payments should only be for the intended purpose specified in the imprest warrant, hence the payment of MCAs allowances were not among the activities specified in the warrants and the proposed program-based budget submitted to the Committee, in contradiction with the documents presented by Martin Nyongesa, an imprest holder, who re-banked Kshs. 776,223 that was supposed to be used to facilitate Hon. Members an event that was cancelled.(Annex 1). Further the MCAs facilitation on 18th April, 2020 towards corona virus sensitization was not part of the money borrowed from Bungoma County Referral Hospital as per the submissions before the Committee.
9. It was noted that, the emergency fund of Kshs. 50 Million which had delayed was received in the County on 14th April, 2020. The said Emergency funds were geared towards the training of medics, purchase of equipment’s, preparations of the isolations and quarantine centers.

COMMITTEE GENERAL RECOMMENDATIONS

1. THAT, the County Executive Committee Member for Finance and Economic Planning to ensure that all monies taken by M/s Carolyne Buyela an Advisor on Special Programmes, Office of the Governor, M/s Pamela Serut – (SDU- Page 35 of 41 office of the Governor) and Geoffrey Wafula totaling to Ksh. 2,328,669 is fully surrendered and compliance report be forwarded to the County Assembly within 7 days from the adoption of this report.
2. THAT, the Appointing Authority to layoff M/s Carolyne Buyela; Mr. Martin N.Wafula and M/s Pamela Serut for being imprest holders in contravention of the Transition Authority Circular REF: TA/2/1 dated 10th March, 2015 which highlighted that, “the position of the Chief of Staff and those of other Advisors are not a Public Service Office but political appointees and have no executive powers and cannot commit the Government in anyway especially on financial and human resources matters”. Further M/s Carolyne Buyela facilitated the procurement of the 368 tapped Jericans, 360 buckets, 20 litres of liquid Soap (50 No.) and four boxes of Bar Soap. In this regard, the Committee sturdily recommends that, the Committee on Implementation to ensure compliance and that no public funds be expended on the said Officers forthwith in terms of personal emoluments from the adoption of this report.
3. THAT, the County Executive Committee Member for Finance and Economic Planning as the Head of County Treasury to reprimand the Accounting Officer Department of Health and Sanitation pursuant to Section 156 (2) (a) of the Public Finance Management, Act, 2012 for contravening Section 156 (4) (b) of the Public Finance Management, Act, 2012 on undermining financial management procedures.
4. THAT, the County Executive Committee Member for Finance and Economic Planning as the Head of County Treasury to revoke the designation of Mr. Jonathan Namulala as Ag. Chief Officer County Department of Finance and Economic Planning pursuant to Section 156 (3) of the Public Finance Management, Act, 2012 for contravening Section 156 (4),(b) & (c) of the Page 36 of 41 Public Finance Management, Act, 2012 on undermining financial management procedures; permitting an expenditure that is unlawful and not properly authorized and failure to do a written notice to the imprest holders pursuant to the provisions of Section 152 of the Public Finance Management, Act, 2012.
5. THAT, the County Executive Committee Member for Finance and Economic Planning as the Head of County Treasury to take appropriate measures to discipline the Bungoma Medical Superintendent by revoking the AIE holder status and refer the matter to be dealt with in terms of the statutory and other conditions of employment applicable to him for contravening Regulations 92 of Public Finance Management (County Governments Regulations), 2015; Section 156 (4) (b) & (c) of the Public Finance Management, Act, 2012 and Section 196(5) of the Public Finance Management, Act, 2012 for; (i) Failure to approve all the imprest facility given to the nine imprest holders; (ii) Undermining the financial management procedures and for permitting an expenditure that was unlawful and not properly authorized; (iii)Directing the Hospital Accountant to do an act that constituted a contravention of, or a failure to comply with the Law.
6. THAT, the appointing authority to ensure a substantive Chief Officer for Finance and Economic Planning is appointed but, in the meantime, the appointing authority to invoke the powers bestowed under Section 45 (5) of the County Governments Act, 2012.
7. THAT, the Committee finds the County Executive Committee Member for Public Administration Management and Public Service culpable for financial misconduct for usurping the roles of the Accounting Officer by approving the Page 37 of 41 expenditure budget of Kshs. 6,986,000 for Covid -19 awareness, approving the rebanking of the monies that were not expended by one of the Imprest Holders thus contravened the Public Finance Management Act, 2012, Section 196(5), 197 (1) (i); 198 (1) (a), (b);further exhibited abuse of office, gross misconduct and gross violation of the Constitution, 2010,hence be subjected to the consequences as laid down under Section 40 (1) (b), (c) & (f) of the County Governments Act, 2012
8. THAT, the County Assembly warns the County Executive Committee Member for Finance and Economic Planning to adhere to Section 111(2) of the Public Finance Management Act, 2012 and further recommends the Sectoral Committee on Finance and Economic Planning to investigate the expenditure of the Emergency Funds in the County.
9. THAT, all Public Officers in the County Public Service should be aware of the provisions of Sections 196(5)(6) & (7) of the Public Finance Management, Act, 2012, which stipulates as follows; “(5) A public officer shall not direct another public officer to do an act that constitutes a contravention of, or a failure to comply with, this Act, the Constitution or any other written law. (6) A public officer who contravenes this section commits an offence and on conviction is liable to a term of imprisonment not exceeding two years or to a fine not exceeding one million shillings, or to both. (7) Where a national government entity or a county government entity— (a) engages in an action that it is prohibited from doing by this Act; or (b) fails to comply with an obligation imposed on it by this Act, a public officer who assisted or facilitated the act, or who was a party to, or contributed to, the failure, commits an offence and on conviction is liable to a term of imprisonment not exceeding two years or to a fine not exceeding one million shillings, or to both in addition to provisions under Article 226(5) of the Constitution”
10. THAT, the Committee finds the County Executive Committee Member for Health and Sanitation incompetent and thus be subjected to the consequences as laid down under Section 40 (1) (a) of the County Governments Act, 2012 Page 38 of 41 for contravening Article 183 (1) (c) of the Constitution of Kenya and Section 36 (1) (a) of the County Governments Act, 2012, for failure to supervise the administration and delivery of services and failure to manage and coordinate the functions of the County Health and Sanitation Department.

11.THAT, the County Public Service Board to take appropriate disciplinary action against Martin Wakabola Wesonga (Bungoma County Referral Hospital Accountant), Stella Puka (Imprest Holder), Kizito Nyongesa (Imprest Holder), Geoffrey Wafula (Imprest Holder), Noel Kusienya (Imprest Holder) and Simon Simiyu (Imprest Holder) in terms of the statutory and other conditions of employment applicable to themfor contravening the provisions of Section 196(5) (6) & (7) of the Public Finance Management, Act,  2012.

12. THAT, the County Secretary and the Head of the Public Service to layoff Mr. Kevin Namulala for being an imprest holder in contravention of the Transition Authority Circular REF: TA/2/1 dated 10th March, 2015 which highlighted that, “the position of the Chief of Staff and those of other Advisors are not a Public Service Office but political appointments and have no executive powers and cannot commit the Government in anyway especially on financial and human resources matters”. Further the Committee strongly recommends that, the Committee on Implementation to ensure compliance and that no public funds be expended on the Officer forthwith in terms of personal emoluments from the adoption of this report.

13.THAT, the County Executive Committee Member for Finance and Economic Planning to ensure that a sum of Kshs. 5,930, 954 Million are refunded back from the emergency funds since the monies borrowed was withdrawn in reference to the emergency of Covid – 19 awareness within a period of 7 days from the adoption of this report. Page 39 of 41

14.THAT, all the Accounting Officers to strictly adhere to Regulations 42 (1) (b) of Public Finance Management (County Governments Regulations), 2015, which provides that, “An Accounting Officer shall ensure that public funds entrusted to their care are properly safeguarded and are applied for purposes for only which they were intended and appropriated by the County Assembly”

15.THAT, the County Executive Committee Member for Finance and Economic Planning, County Secretary and the Head of the Public Service and the County Public Service Board to file an implementation status report on the respective resolutions above within 14 days from the adoption of this report

The FULL tabled REPORT; HEALTH REPORT -CORONA VIRUS (FINAL COPY 1) (1) 10-6-2020