Corruption

Kesses MP Mishra Received Sh150M From Kemsa

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Kesses MP and owner of Mediheal Group of Hospitals, Dr. Swarup Mishra is yet again on the spotlight in another healthcare corruption scandal.

Director of Public Prosecution Noordin Haji returned file on alleged procurement irregularities to the EACC at the Kenya Medical Supplies Authority (KEMSA) for further investigations.

Haji said his office had finalised reviewing files of alleged beneficiaries of the alleged scandal at Kemsa and upon review, it emerged that the scope of the investigations was massive.

Several witnesses, entities and thousands of documents were examined.

In a statement, Haji said that his office received the files containing six names of senior officials at Kemsa from the Ethics and Anti-Corruption Commission.

“The team identified key areas that need to be sufficiently covered by way of further investigations before a final decision can be made,” Haji said.

He continued, “Having carefully analysed the report by the team and considering the requirements for a strong and successful prosecution, I have come to the conclusion that the identified areas should be covered by the EACC.”

The DPP further instructed his prosecution team to team with EACC in order to adequately address the identified gaps.

Sources talking to Nairobi Exposed however indicate that the DPP felt other names of businessmen and politicians were left out.

Haji acknowledged that the scandal surrounding Kemsa is a matter of public interest and the public will be updated with more details as the probe continues.

Kemsa has been on highlights for alleged irregular procurement and fraudulent payments that led to the loss of Ssh7.8 billion.

The anti-corruption commission carried its investigations within 21 days as per the direction from President Uhuru Kenyatta and submitted the findings to DPP on September 18, 2020.

On Wednesday 30, September, Auditor General Nancy Gathungu presented to the Senate Committee on Health and ad hoc Committee on Covid-19 a special audit report.

A special audit by the Auditor General had shown that Kenyans lost Sh2.3 billion in the Covid-19 items procurement scandal at Kemsa.

“The procurement process was not initiated based on need assessment and planning resulting in over-procurement of Covid-19 related stock worth Sh6.3b that is still being held at KEMSA warehouses. 97 per cent of the stock has been in the Kemsa warehouses for more than three months implying inadequate market forecasting and planning practices,” Nancy Gathungu reported.

She added, “The items were procured at a higher price as compared to the current market pricing implying that KEMSA may realize a loss of Sh.2,338,261,175 if the products are to be sold at the current market price.”

The auditor General indicated that the management of KEMSA violated various laws leading to the loss of public money.

The report also reveals fraud in procurement and collusion between Kemsa bosses and the companies that were awarded multi-billion shilling contracts.

According to documents seen by Nairobi Exposed, Medilife Biological a sister company of Mediheal Healthcare owner by politician Mishra received Sh140M from Kemsa to supply PPEs.

The two branches in Nairobi.

Incidentally, Mishra was sitting on the health committee where before he was ousted in the jubilee in-house purge, he was the Vice chairman.

While this is obviously a case of conflict of interest for Mishra to do business with the government, it is not the first time it’s happening.

Mediheal was also involved in the medical equipment leasing program where taxpayers lost over Sh63B.

Mishra was subcontracted by Sevens Sea to oversee radiotherapy services in the county. According to an report by the senate exposing the scandal, most companies that were awarded the contracts largely under delivered.

While still sitting on the health committee and having an upper hand in cutting deals, Mishra shamelessly and unapologetically did business with the government. This is contrary to directive given by the president against public servants engaging in business with the government.

But that’s not all, Mediheal Group also won a lucrative insurance deal with Minet brokers to offer healthcare services to teachers countrywide. Another case of business with the government. The Hospital has been getting negative reviews on service delivery according to a round check of feedbacks.

Mishra who’s not new to controversies got into a nasty fight with the medical’s practitioners president Dr.Lukoye years back over alleged NHIF scam, he threatened him with death.

Mediheal has had allegations of detaining patients, holding logbooks and tittle deeds of patients. COFEK, consumers lobby group has called for investigations into the accusations including overcharging at Mediheal.

Recently, the MP was at the center of accusations of organ smuggling in his hospital claims that he vehemently denied.

The furious lawmaker in a video seen by Nairobi Exposed faulted some members of his constituency specifically from Kaplelach village, for alleging he became rich through the trade.

“We have tried so hard to bring kidney transplant, neurosurgery and spine surgery medication to residents of Eldoret town yet someone from Kaplelach in Kesses is here busy peddling lies that Mishra is doing human organ trafficking. If you want my position no problem, I will resign and let you be, I don’t care,” he said. 

The then vice chair of the Parliamentary committee on health warned “rumour mongers” against spoiling his “good” name.

“If you do now want Mishra, tell me in a very nice way, you can even speak to me in local Kalenjin dialect, no problem. I do not need the MPs seat to help people, I can do so without being in power,” he added.

The allegations came when Mediheal hospitals appointed Dr. Prem Kumar Gokul as the vice president. Mr Gokul is under investigations by Interpol for smuggling human parts. He is alleged to be part of a racket that smuggles kidney across the globe.

We’re also told the healthcare proprietor is notorious for bringing into the country foreign employees mostly from India using students visa allegations that have been forwarded to the immigration department to vet their work permits but nothing much has been forthcoming perhaps given his deep pockets and political tenure security that he enjoys.

Mishra remains one of the biggest Asian businessmen controlling the big medical tenders in the country.

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