Team calls for disciplinary action against PKF

Tuesday, September 15th, 2020 00:00 |
Integrity Centre. Photo/File

Hillary Mageka @hillarymageka

A Senate committee has petitioned the anti-graft body to expeditiously commence investigations to establish circumstances under which two local firms were contracted to offer financial advisory services under the Managed Equipment Services (MES).

The Ministry of Health contracted PKF Kenya and Spa Infosuv East Africa Limited, through a restricted tendering process at a contract sum of Sh9.6 million. Sh598,032 was withheld for payment of Value Added Tax.

Balance of Sh8.4 million was shared between the two firms, with Spa Infosuv ultimately receiving Sh4.8 million.

In particular, the Senate Ad hoc committee wants the Ethics and Anti-corruption Commission to probe the circumstances under which PKF was awarded a contract to undertake a value-for-money assessment and was paid Sh9 million for completing the work and submitting its findings in “an unrealistic” period of three days.

In addition, the team chaired by Isiolo Senator Fatuma Dullo has asked the Institute of Certified Public Accountants of Kenya to conduct disciplinary proceedings against PKF Kenya under the Accountants Act for their unethical and unprofessional conduct.

In a damning report tabled before the Senate on Tuesday last week, the committee established that the value-for-money assessment assignment was supposed to last 45 days and was to include visiting the counties.

However, the consortium took barely three days to submit their finding with no evidence submitted to show that PKF visited counties as part of their research.

This is the report, which the the ministry relied on and decided to use the MES model and procurement through public procurement as opposed to the Public Private Partnership as initially conceptualised.

Public Sector Comparator (PSC) developed by the financial advisors - PKF Kenya and Spa Infosuv East Africa Limited - formed the basis for awarding the tenders, the report says.

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