MPs to unearth mystery of Sh100bn SHA system

LAWMAKERS are now seeking to unearth the mystery of the Sh104.8 billion system running the Social Health Authority programme.

Senators have launched an inquiry into the controversial Integrated Healthcare Information Technology System, a move that will put spotlight on the Ministry of Health, Controversy rocked the roll-out of the IHTS after revelations about the billions it gobbled and the opaque nature in which the system was procured.

Top state officers have been linked to the contract for the system, which observers have described as a rip-off.

In the inquiry being conducted by the Health Committee, the senators are seeking to establish why SHA system is being run by individuals.

 “Explain why Kenya’s health data is being held by private individuals,” Machakos Senator Agnes Kavindu asked.

The senator wanted to know whether the tendering process was conducted transparently.

The system is a key component of the Universal Health Coverage Programme and will be implemented over 12 years, with Safaricom PLC as the lead partner. 

However, concerns emerged about Safaricom’s role in leading the consortium despite what it termed its limited stake in the project at approximately 13 per cent.

The consortium, which includes Apeiro Limited and Konvergenz Network Solutions Limited, were reportedly single-sourced to facilitate deployment of the system.

The procurement was conducted under the Specially Permitted Procurement Procedure (SPPP) and involves the development of a comprehensive digital healthcare platform.

CONTRACT AGREEMENT

The probe seeks to unearth details of how the contract was awarded, number of bids received, criteria used in selecting the consortium awarded and the costs of the award.

In addition, the lawmakers want to know the reasons behind the ‘nondisclosure’ of the control charges fees of 2.5 per cent on members’ contributions claims on health facilities of five per cent.

“Explain non-disclosure of track and trace solutions at a rate of 1.5 per cent for 10 years with projected revenue to the consortium of Sh111 billion,” Kavindu said.

The committee also wants to establish why the contract signed between the government and the consortium bars usage of alternative systems.

They also want to know the details of the signatories of the account in the contract agreement. In the probe, the Ministry of Health will explain why there is a transfer of funds to the escrow account on a daily, weekly basis.

The ministry will also explain why it did not disclose the Sh7 billion set aside in the contract for training, support and customer education.

This will include the number of health workers to be trained on the system and the mode of training that led to arriving at the said cost.

“Explain why the contract signed requires that disputes arising be resolved by arbitration under the rules of the London Court of International Arbitration, contrary to the provisions of the Public Procurement Administrative Reviews Board (PPARB) and the Public Procurement and Disposal Act,” Kavindu said.

The ministry will also provide reasons for the non-accessibility of the Controller of Budget to the Social Health Authority (SHA) and its operations outside the Consolidated Fund.