Dr. Wilson Arwasa, the Chief Executive Officer of Moi Teaching and Referral Hospital (MTRH) in Eldoret, appeared before the National Assembly’s Public Investments Committee on Social Services Administration and Agriculture to address audit concerns highlighted in the Auditor-General’s report for the financial year 2015/2016.
Accompanied by his procurement manager, Mr. Julius Oraro, Dr. Arwasa was tasked to explain why a significant sum of Ksh. 462,947,925, reflected in the financial statements for payroll deductions between May and prior months in the same financial year, had not been remitted to the respective entities. Committee Chairman, Hon. Emanuel Wangwe, emphasized that this failure was a violation of the Employment Act 2007.
Additionally, the Committee raised questions regarding the ethnic composition of the hospital staff, as outlined in the auditor’s report. The records presented to the Committee revealed that as of June 30, 2016, the hospital had 12 members of management, 6 senior management staff, and 3,104 other permanent and pensionable staff. Committee Vice Chairman, Hon. Caleb Amisi (Saboti), questioned the findings, highlighting that one dominant community made up 69% of the total workforce, contrary to Section 7 (1) and (2) of the National Cohesion and Integration Act 2008, which emphasizes diversity in employment.
In response, Dr. Arwasa explained that payslip deductions not being remitted was due to underfunding and delays in Government funding release from the Treasury. He assured the Committee that the funds were released and had been promptly remitted.
Regarding the issue of ethnic composition, Dr. Arwasa clarified that senior positions were filled through competitive sourcing, adhering to the law.
However, he acknowledged an imbalance in lower-level positions due to less attractive remuneration packages, leading to a higher concentration of local staff. The management, he assured, was working progressively to rectify this and adhere to stipulated rules.
The Committee also raised concerns about under-expenditure in Budget Performance, encroachment on the hospital’s land by an NGO and two other Government agencies, non-compliance with the Salaries and Remuneration Commission (SRC) regulations, and the absence of official documents to validate transactions in the procurement office. The office was found to have violated the Public Procurement and Disposal Act during the upgrading of CT scan machines for the hospital.
Hon. Bernard Kitur (Nandi Hills) urged the MTRH management to adhere strictly to the law in all public activities they engage in.
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