Transfer of whistleblower health auditor raises queries about Sh5bn scam cover-up

The internal auditor who uncovered the alleged Sh5 billion scandal at the ministry of Health has been transferred, just over a month after the story broke.

Bernard Muchere, a certified fraud examiner, was moved with 16 other auditors from other ministries in changes authorised by Treasury CS Henry Rotich. Muchere was moved to Treasury.

The changes take effect today.

Before Parliament, Muchere had stuck to his guns about major irregularities but said he needs a forensic audit to be certain about the sums. The Health ministry says nothing was misspend but it is reexamining Sh3.2 billion.

However, the transfer triggered fears of cover-up and victimisation of the auditor since probes by the anti-graft agency and Parliament’s Health committe are underway. “We are afraid this is a grand cover- up. Their intention is to finish the auditor,” a highly placed source in government told the Star.

However, in his letter copied to almost 20 PSs, Rotich said the new posting was necessitated by recent promotions of eight senior internal auditors to the Education ministry.

“It has been found necessary to make the following changes to ensure efficient services,” he said.

Muchere now heads to the Internal audit headquarters at Treasury. Previously, Health Principal Secretary Nicholas Muraguri, who is at the centre of the alleged “MafyaHouse” scandal, had attempted to transfer the auditor.

In a letter to Rotich, Muraguri complained of Muchere’s “unfavourable” reports that were causing trouble with donors over huge funds that the ministry handles every year.

“During the past few financial years, the ministry has been getting qualified audit reports due to ineligible expenditure which could have been avoided if strong internal controls were in place,” Muraguri said in July, asking Rotich to transfer Muchere.

In the new changes, Francis Njau, who was in charge of internal audit in the Ministry of Transport, now takes over as the new head of internal audit, Ministry of Health.

Maurice Gichuhi, who was the internal auditor at CID, now heads to the National Police headquarters.

Betty Amulyoto, who was at the internal audit headquarters, now heads to the Ministry of Education.

Others are Martin Ngagi (Regional Coordinators office, Nairobi) who now heads to the Ministry of Interior headquarters, Virginia Mulinge (Foreign Affairs) now heads to the Ministry of Culture, while Martin Oloo (Treasury) heads to the Ministry of Transport.

Source