The Kenya Medical Research Institute is on the sport over a possible embezzlement of 2.28 billion shillings.
Recent media reports suggest that the Institute is on the spot over irregular hiring of staff members and failure to account for some donor funds.
The claims are contained in a letter sent to the office of the Deputy President Rigathi Gachagua by a senior member of KEMRI staff.
The letter was written on 29th November 2022 and titled Financial Irregularities/ mismanagement /Abuse of office and Malpractices at KEMRI.
In the letter, the Kenya Union of Civil Servants KEMRI branch said it has received from its member’s information regarding serious financial mismanagement and various malpractices that entail unknown status of 2.28 billion shillings.
This amount includes shs 473 million received from the National Treasury for payment of risks and extraneous allowances including areas in the year 2019 with shs 60 million per month for 38 months’ capitation.
For 38 months since then until November 2022, KEMRI received a total of 2.28 billion shillings.
The union said its request for the status and whereabouts of the fund through a letter addressed to KEMRI Director General on 28th October 2022, has never been responded to.
Another matter is failure by KEMRI management to account for 1.2 billion donor funds.
“It is alleged that the current management may have diverted the ksh. 2.28 billion to Azimio La Umoja campaigns through a powerful individual at the Ministry of Interior and Internal security. It is alleged that Mr. Anthony Wachira the current director finance and acting director corporate services is the official behind the malpractice.” The letter reads
The letter said that Mr Antony Wachira misappropriated the funds and that the situation is likely to affect research programs which depend on donor funding
Illegal hiring, promotion and appointment of some staff was also raised as a major concern with the management being accused of being unable to fill the position of deputy director human resource and instead requesting for secondment of a crony of one of the senior managers from the public service commission.
“The Management further went ahead and requested for the secondment of one Beatrice Adieri from Public Service Commission. Our concern is that the secondment of Ms. Adieri to KEMRI was in bad faith since she does not possess the required membership from Institute of Human Resource Management” the letter reads.
Another case mentioned is whereby an individual was promoted to the position of deputy director head of Internal audit.
The positon was not vacant and the Union said this amounts to abuse of office by some senior managers at KEMRI.
“Your excellency, it is alleged that the Deputy Director Finance who is also acting as Director Corporate Services Mr. Anthony Wachira at KEMRI cannot account for donor funds estimated to ksh. 1.2 billion. It is alleged that the officer has misused the funds in the pretext of refunding the same from cash received as capitation from the National Treasury. This is likely to affect research programs at KEMRI which heavily rely on donor funding,” said the union.
Members also have information that the head of finance Mr. Anthony Wachira has not accounted for ksh. 12 million Imprests as a per the internal audit report at KEMRI.
The union added that KEMRI is in violation of the Attorney Generals circular on engagement of private legal services by state corporations which directed that “a state corporation shall not engage an internal legal service provider without prior express approval of the Attorney General”
Its alleged that the department of legal services at KEMRI has failed to comply with the circular.
The same letter was sent to the EACC and other investigative agencies.
In a rejoinder on NTV, acting KEMRI Director General Sam Kariuki, dismissed the union saying the group does not have an MoU with KEMRI thus no legitimacy.
He said the union failed to use proper channels to demand for accountability.
He said employees who raised the issue of loss of cash missed out on allowances and they went to court to seek redress.
Kariuki denied that KEMRI has lost the cash.