By LUKE ANAMI and LONAH KIBET

The Kenya National Union of Teachers (Knut) and the Kenya Medical Association (KMA) have kicked off a war of words with the National Hospital Insurance Fund (NHIF) caretaker committee.

The two organisations alleged the fund has lost more than Sh455 million in three months.

They claimed part of the money had been lost through per diems and sitting allowances paid to its caretaker committee members whose term had been brought to an end by a court order.

Other monies, they said, have been paid as salaries to 34 new staff.

At a press conference in Nairobi Tuesday, KMA and Knut chairmen Elly Nyaim and Wilson Sossion gave the Government seven days to reconstitute the board or freeze payments from their members.

“Financial and insurance analysts are projecting that civil servants’ medical scheme is currently making losses and eating into the national social scheme to the tune of Sh381 million for the first six months,” said Dr Nyaim and Sossion.

But acting CEO Adan A Adan, together with other officials dismissed the claims, saying the facts were “clear and available”. “It is outrageous to claim I have been paid those monies. The media should put the facts straight instead of misleading the public. The caretaker committee should be commended for a job well done instead of blaming us,” Adan said.

Responding to claims he is in office illegally despite a court order, Adan said the State Corporations Act under whose term he was serving is superior to the NHIF Act.

“KMA and Knut are on the wrong side. The President appointed the committee. You cannot sue the President. The AG has appealed and we don’t know why the appeal is still pending. We have also paid our service providers,” he added.

But in a swift rejoinder, Rachiel and Amollo Advocates who represented KMA refuted claims by Adan that the State Corporations Act is superior to the NHIF Act and denied the Government had appealed.

“That is what we thought they would come and argue in court but so far there has neither been an appeal nor a notice sent to us. They are illegally in office and we are in the process of filling contempt of court charges against Adan and the caretaker committee,” lawyer Stephen Ligunya said.

Nyaim and Sossion insist the service providers were yet to be paid for services rendered in the treatment of civil servants under the scheme and wondered why private insurance firms were paid more than Sh353 million.

“The caretaker committee has no powers under the NHIF Act to even employ a cleaner,” Sossion said.