Governor Natembeya admits to using hospital money for conference

Trans Nzoia Governor George Natembeya has come under scrutiny over the withdrawal of Sh9.45 million from Kitale County Referral Hospital to fund his administration’s attendance at the 2023 devolution conference.

The Senate County Public Investments and Special Funds Committee heard that the money collected from patients was taken from the hospital’s revenue account despite the facility lacking a functional intensive care unit (ICU) or high dependency unit (HDU).

According to Auditor-General Nancy Gathungu’s report for the financial year ending June 30, 2024, the Level 4 hospital should have six ICU beds and an equal number of HDU beds but has none.

The facility also lacks anaesthesiologists and has only 14 medical officers instead of the required 16.

The audit report revealed that the withdrawal was made without the approval of the hospital’s board, and there were no documents showing any formal agreement between the county and the hospital’s management regarding the transaction.

Governor Natembeya, appearing before the committee chaired by Vihiga Senator Godfrey Osotsi, admitted that his administration took the funds due to delays in Exchequer releases.

“We have admitted to the borrowing. It was done because we did not have any budget for the devolution conference, and so we borrowed the money to participate in the conference,” he said.

“We will ensure the money is refunded in the current financial year’s budget, that is, before the year ends," Natembeya added.

He explained that the borrowing was internally coordinated by chief officers in the Health and Finance departments.

However, senators pressed for documentation to support the decision.

Trans Nzoia Senator Allan Chesang questioned the role of the hospital’s board in financial decisions.

“What is the work of the hospital’s board if approvals can be made internally without the input from the board and money withdrawn and used?” he asked.

Nominated Senator Peris Tobiko also raised concerns about the legality of the transaction.

“Even if it was internal borrowing, is there supposed to be approval from the hospital’s board? Does the law allow such open borrowing?” she asked.

Section 142 of the Public Finance Management Act, 2012, states that county government entities can engage in short-term borrowing for cash management purposes only if authorized by the county assembly, and the funds must be repaid within a year.

Senator Osotsi questioned why the county government had not yet refunded the money, given the legal requirements.

“Why is it taking too long to refund the money, yet the law is clear that the money should be returned?” he asked.

The audit report also raised concerns over an additional Sh3 million in grants from donors and development partners whose whereabouts remain unclear.

Governor Natembeya responded that efforts had been made in 2022 to recruit an anaesthesiologist for the hospital, but no applications were received.

He added that the facility is currently training a medical officer to specialise in anaesthesiology.

Additionally, the hospital’s management has allocated a budget to complete and operationalise the ICU and HDU units.

The issue has sparked debate over financial accountability in county hospitals, with senators demanding clear documentation and adherence to legal procedures in handling public funds.