The Social Health Authority (SHA) Chief Executive Officer Dr. Mercy Mwangangi faced tough questioning from Parliament on October 22 over questionable expenditures, including paying Ksh77.6 million in legal fees to recover just Ksh13.9 million.
Appearing before the Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA), chaired by Emmanuel Wangwe (Navakholo), SHA officials were grilled on audit queries raised by the Auditor-General for the 2021/2022 to 2023/2024 financial years.
The committee expressed outrage over reckless and wasteful spending by the Authority’s management and board.
“Where is the value for money when you pay KSh77 million to collect KSh13 million?” Wangwe asked, citing violations of the Advocates’ Remuneration Order.
SHA Expenditure on Spot
According to the Auditor-General’s report, the Authority spent Ksh247.8 million on legal expenses, out of which Ksh91.6 million was linked to cases valued at only Ksh13.9 million.
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The committee also flagged Ksh5.83 million in board meeting payments unsupported by attendance registers or minutes.
“If you say that the Board was paid five million, this means many deserving Kenyans were denied an opportunity to be treated,” said Martin Peters Owino (Ndhiwa).
The lawmakers revisited SHA’s multi-storey car park project, whose cost ballooned from Ksh909 million to Ksh3.97 billion, a 337% increase.
The committee noted that despite previous recommendations for an Ethics and Anti-Corruption Commission (EACC) probe, no progress report had been received.
“There were more than two payments on the car park which shot the budget by 37%. Make sure you tabulate all the transactions,” Wangwe said.
Mercy Mwangangi Defend SHA
Bishop Kosgei (Nominated) criticized SHA’s finance team, accusing them of withholding information from auditors.
“The Finance Director has let down the CEO and the institution by failing to cooperate with auditors and provide proper responses,” he said.
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Vice-Chairperson Caleb Amisi (Saboti) decried what he called a pattern of excuses by state institutions.
“We are talking about billions of shillings of taxpayers’ money. The COVID-19 pandemic line is a tired excuse by government institutions that have embezzled public funds,” Amisi said.
In response, Dr. Mwangangi defended the Authority, saying it was still managing inherited challenges from the defunct National Health Insurance Fund (NHIF).
“We are committed to accountability and transparency, and we have made significant reforms to address past weaknesses,” she said.
The committee directed SHA to submit all missing documents and evidence of cooperation with the EACC regarding the stalled car park probe.
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