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In a session before the Senate County Public Investments and Special Funds Committee, Nandi Governor Stephen Sang and his executive faced a barrage of criticism over what lawmakers termed systemic financial failure and legal negligence. The committee, led by sessional chair Sen. William Kisang, scrutinized the management of Kapsabet Nandi Water and Sanitation Company, Kapsabet Municipality, and the Kapsabet County Referral Hospital (KCRH).
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The audit report for KCRH, which received a qualified opinion, served as the primary centre of focus. Senators were particularly incensed by a massive breach of data protection laws. The hospital admitted it had no personal data retention schedule or a published policy reflecting its handling practices for sensitive patient information. Sen. Raphael Chimera did not mince words, stating, "This executive is sitting on a legal time bomb by processing sensitive medical history and bank details without any regard for the Data Protection Act."
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The interrogation turned to a suspicious Ksh 8.9 million loss attributed to irregular waivers. Sen. William Kisang invoked the Public Finance Management Act, 2012, specifically Section 159, which mandates that every waiver must be recorded and reported to the Auditor General. "Section 159 of the PFM Act exists to prevent the looting of public funds under the guise of charity," Kisang noted. "Your failure to provide minutes for these waivers suggests a complete breakdown of fiscal discipline."
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Equally baffling was the "nil balance" reported for revenue from rented facilities, despite the hospital owning 16 junior and 18 senior housing units. Sen. Agnes Kavindu expressed disbelief at the missing millions. "It is mathematically impossible and logically absurd to report zero revenue when your own records show staff are occupying these houses," she argued.
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Governor Sang, appearing defensive, attributed the failures to chronic staff shortages and the chaotic transition to the Social Health Authority (SHA). "The transition from NHIF made it difficult to ascertain claims, and we are currently regularizing our housing records through a check-off system," the Governor claimed. However, the committee remained unimpressed by the excuses, citing the Auditor Generalβs conclusion that internal controls and risk management in Nandi County are effectively non-existent.