Oct 21, 2021

Mawazo Writing Africa

Writing about the main

Petitioner wants payment of Sh80bn debt by health ministry

A Moi-era supplier has petitioned the National Assembly to force the Ministry of Health to pay him for anti-malarial drugs and equipment that were supplied nearly 30 years ago.

Diviesh Patel of Equip Agencies requests that MPs inquire about the circumstances under which the Ministry of Health refused to pay him.

He raised concerns that the ministry failed to pay him itself after he voluntarily waived $ 65 billion of the debt.

Should the debt be paid in full, the Department of Health’s operations will be paralyzed, as the Sector 121.8 billion Sh. were allocated.

Patel argues that the government has not proven its offer to bring the debt to Sh15 billion to complete the negotiations.

“The government’s refusal to pay off the debt , is a blatant violation of the company’s rights and has continued to subject owners to uncertainty and bankruptcy, “he says.

He believes the ministry has confirmed receipt of goods that meet specifications corresponded to the conclusion of the contract of July 14, 1995 – the era of the late President Daniel Moi.

80 billion US dollars “, says the petition.

” The payment is still pending, “said the Petitioner, adding that the follow-up investigations at Afya House have been in vain for the past 20 years.

“If the matter is not resolved immediately, Equip Agencies Limited risks bankruptcy, but the company backed them Government initiative to make Kenya a malaria-free Making land by supplying malaria equipment and medicines, “says the businessman.

Patel goes on to claim that the company has since suffered irreparable financial damage and is unable to continue its business fund and meet its tax obligations.

The arrears, he said, amount to Sh3.6 billion, including fines if equip agencies’ assets are put up for auction through financial loans and Sh9 billion owed to overseas suppliers .

The Sh80 billion relates to a principal debt owed since 1995, interest and costs as decided by the High Court in 2011 and confirmed by the Court of Appeals in 2017.

Patel wishes, That the MPs recommend a budget allocation to the Ministry of Health, if necessary, in order to settle the decree amount as incurred debts and accrued interest as soon as possible.

He also wants MPs to make recommendations to the health committee to which the petition was sent to secure his property and economic rights.

Equip Agencies Ltd supplied anti-malarial equipment and supplies between 1995 and 1997. Medication to the MoH for 1.2 billion Sh. .

Patel argues that the ministry has failed to meet its contractual obligations and does not yet have to pay the company any money.

“This has affected the company’s financial sustainability as it is a legitimate one Expecting to get back the money used to procure the supplies if it is paid by the government, ”the petitioner said , 8 billion Sh. plus compound interest of 18 percent per annum from March 1999.

Following a government motion against the orders, the appeals court upheld the Supreme Court’s decision and sentenced PS Health to pay.

Patel says in his petition that the Ministry of Health will approve the edicts of both courts, which will raise the claims to Sh 80 billion by February last year. Auditor General Nancy Gathungu had inquired about the outstanding debt and said that if the Department does not appeal the debt, taxpayers will pay.

Another contractor called on the Ministry of Health also 17.8 billion Sh. for a contract, which in the financial year 1992-93 in the amount of 196 million Sh. has been closed.

Gathungu expressed concerns that amounts have skyrocketed over three decades without the ministry resolving the situation.

The Ministry of Health is also in the process of settling it of Sh1 billion, the balance of a Sh1.8 billion debt that the court awarded a supplier in October 2015, and the same at an interest rate of two percent per month.

“The failure the government’s objection to the awards will create a priority that is likely to lead to similar action by other suppliers, “said the auditor.

Edited by Kiilu Damaris