The Public Investments Committee (PIC) wants the Ethics and Anti-Corruption Commission (EACC) to probe the Kenya Medical Supplies Agency (KEMSA) over the loss of Sh7.8 billion.
The Mvita MP Abdulswamad Nassir-led committee recommended the prosecution of former board chairman Kembi Gitura, Joel Onsare and former Kemsa board members.
Also recommended for probe are suspended CEO Jonah Manjari, director of procurement Charles Juma, Finance director Waiganjo Karanja and head of legal Ferdinand Wanyonyi for dereliction of duty.
The committee wants officials who backdated the commitment letters issued to Shop n Buy Ltd, prosecuted.
As for Gitura, the MPs want him probed for influencing the award of commitment letters to two of the 112 companies under investigation.
The two companies are; Wallabis Ventures Ltd and Villa Surgical Supplies and Equipment Limited.
They also want the companies that received Sh4 billion in payment to refund the state.
“All suppliers that may have supplied at a price higher than the determined prices should refund the government the excess payment made to them.”
Only two companies were found to have followed the law in the procurement of the COVID-19 items while the rest used commitment letters.
“Harleys Limited and Nairobi Enterprises Limited that insisted on following the procurement law were left out in the payment,” the report reads.
The committee recommended that the items held at the Kemsa warehouses be sold. The state, Nassir said, will save at least Sh800 million from the sale.
“For those who have not been paid, let them not get any money until this matter is sorted. For those that have been paid, let the Asset Recovery Agency kick in and recover the funds,” he added.
The committee asked the EACC to probe Manjari and charge him with signing commitment letters, arguing that it is not an instrument recognised in law.
They also want him charged with procuring Covid-19 items without a procurement plan, market survey and budgets.
Further, PIC wants Juma charged with failing to advise the CEO on the necessity to put in place procedures for conducting retrospective direct procurement.
“The EACC should investigate Charles Juma for failure to initiate procurements through requisitions contrary to Section 73 of the Public Procurement and Asset Disposal Act, 2015,” the report reads.
Waiganjo, the committee proposed, should be probed on “whether he abdicated duty as the head of the finance function”.
Wanyonyi on whether he discharged his duty as a legal adviser to the CEO during the procurement.
“The EACC should investigate the Kemsa head of legal department and prefer charges against him if he may have abdicated his role.”