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Civil Service Fraud

Unearthed: Sh6.3 billion Scandal at NHIF

NHIF Board Chairperson Hannah Muriithi. Hannah embodies what is wrong with Kenya. She is the defacto CEO despite being the board chair. She is involved in a Sh0.5 billion scandal.

KEMSA/NHIF have cost taxpayers billions of shillings.

After the Ethics and anti-Corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) failed to do the proper investigations and prosecuting of individuals who fraudulently got tenders for supplies for Kenya Medical Supplies Authority (KEMSA) and costing government losses of over Sh10 billion.

Ministry of health through National Hospital Insurance Fund (NHIF) has illegally broken all basic rules of tendering and NHIF has gone ahead to award a tender at an exorbitant price of Sh6.3 Billion to privately selected group of companies to manage group life, last expense for civil servants, National youth services.

The process to manipulate tenders at NHIF started with the recruitment process of the new C.E.O. Peter Kamunyo Gathenge.

ALSO READ: NHIF And Kenya Red Cross Ambulance Scandal – Part 10 of 20

The first process was stepped on when the likely top candidate seemed not favorable to the cartels. The second interviews were held despite the current C.E.O. Kamunyu being an underdog he was confirmed CEO illegally and EACC was silenced from questioning the process.

The CEO is related to the current Minister for health Mr. Mutahi Kagwe. The first move was to target non-Kikuyu/Meru communities heading various departments.

All of them were moved to NHIF far flank counties.

Peter Kamunyo Gathege, NHIF CEO. His appointment is contrary to the law and activist Omtata moved to court, “The Board abandoned a responsive recruitment process which commenced in the July 2019, and resulted in names of the top three successful candidates being presented to the Cabinet Secretary for appointment, although this was not necessary because the CS’s powers to appoint the CEO were extinguished vide amendments made to the NHIF Act by the Statute Law (Miscellaneous Amendments) Act, No. 18 of 2014.”

The NHIF procurement manager called Wasike and several others from Nyanza, Western and Rift Valley were all removed from key managerial positions and transferred immediately when they gave professional opinion contrary to NHIF chairperson Hannah Muriithi and CEO to renew the multi-billion tenders without advertising they transferred procurement officers who some are not even procurement specialist others don’t have the Kenya Institute of supply chain management qualification to procurement office.

ALSO READ: NHIF Untouchable: Corrupt Hannah Muriithi And The Board Stay On Amid Scandals

Currently, NHIF has been harassing staff to send to management all their updated CVs intimidating whoever fails to sign documents as required by CEO.

Earlier this year, NHIF had tried to irregularly award group life tenders but reversed quickly, when the KEMSA scandal came to play. Yesterday (3rd November) in a well-organized scheme the NHIF/IRA/Treasury /Ministry of health crooks took matters serious and awarded a tender directly ignoring all set procurement regulations.

The NHIF went further to calculate premiums on its own supported by Kiptum CEO of IRA to excessively exaggerate the premiums from the past tender to Jubilee insurance at Sh889 million to Sh6.33 billion yet the population is the same. (comparative numbers NATIONAL POLICE MEDICAL MOST RISK BUSINESS OVER 130K members minus dependants costs 4.5B, national police group life/GPA cover cost 2.2B).

ALSO READ: Huge: NHIF Board Chair Hannah Muriithi Linked To A Ksh. 500 Million Scandal With MMC Africa

They cooked figures to reflect fake COVID-19 risk and increased the cost six times the market value. The same cartels that have been under investigation Pioneer insurance company, Britam insurance company, CIC insurance company and the new kids ABBAS and Sanlam (Same companies involved in the fraudulent TSC medical scheme under investigation by senate) are set to benefit from the illegal process, a cut and paste formula borrowed from KEMSA; where the agency was calling and awarding tenders as if it is a personal business.

This kind of price-fixing and tendering is illegal, the law clearly states open tendering and competitiveness

The CEO NHIF has lost control to IRA, TREASURY, MINISTRY OF HEALTH cartels trying to milk NHIF money by manipulating tenders.

In all the years the Government of Kenya has procured for services there’s no day state agencies or ministries have called top suppliers set prices and told them to agree among them self’s how to share tenders, this is day time robbery and abuse of office by NHIF board members and CEO should all be arrested.

The den of thieves.

As the President is working hard to improve health sector, the cartels at the ministry of health are busy undermining the universal healthcare bill being pushed by Government and County Governments. It is important to note that IRA is supposed to act as the regulator and it is illegal for it to be part of procurement process that favors a particular group of companies over the rest.

ALSO READ: “Let It Collapse’, Kenyans Express Anger At Hannah Muriithi’s Mismanaged NHIF

Kiptum has turned IRA into his money-making machine.

He pretended to block NHIF from previously procuring insurance services till when he was looped into benefiting from kickbacks from the insurance cartels. Behind the whole scheme, there is common names that have been identified where at least Sh3 billion is to be channelled back through a certain agent called Maina.

Zamara Insurance brokers and two other insurance agencies belonging to the chairperson of NHIF and Treasury representative at NHIF by the name Mwaura Kamau. We call on the DCI, EACC, PPRA, and Competition Authority of Kenya to intervene and save taxpayers money. (NOTE THAT THE ABOVE BUDGET IS NOT ANYWHERE IN THE PROCUREMENT BUDGET PLAN APPROVED BY BOARD FOR CURRENT FINANCIAL YEAR SEE ATTACHED)

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