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NHIF: Forensic Audit ordered into dealings

By | May 7th 2012

By David Ohito

It is now emerging that deep consultations were made between offices of President Kibaki and Prime Minister Raila Odinga before sending home the embattled board of the National Hospital Insurance Fund (NHIF).

Briefly thereafter, the hammer fell on the board as it was sent on a three month suspension with investigations instituted immediately and a forensic audit ordered.

The move ended confusion and double speak within different government organs fighting for control of the fat kitty.

The Chief Executive Officer Mr Richard Kerich, too will be away for at least 90 days as the forensic audit is undertaken to unmask how the deal went sour.

Raila said in a statement that the Efficiency Monitoring Unit, together with a private Forensic Audit firm will commence investigations into the Fund to get to the bottom of serious allegations that have been made.

The caretaker team will led by Mr. Adan A. Adan, currently the Deputy Secretary in the Ministry of Medical Services. He will take over as CEO of NHIF, in acting capacity.

A caretaker board has been constituted to assist the acting CEO. Members of the caretaker board will include: Prof Mutuma Mugambi-Chairman, Office of the President, Office of the Prime Minister the   PS, Ministry of State for Public Service, PS Ministry of Finance, and PS Ministry of Labour.

In the caretaker board will also incorporate representative of the Kenya National Union of Teachers, a  representative of the Kenya Medical Association, a representative, Central Organisation of Trade Unions and a representative, the Federation of Kenya Employers.

Terms of Reference

The caretaker board will examine the current system of roll out of the civil service, teachers’ medical insurance scheme and recommend ways to improve it.

Establish whether NHIF has the capacity to manage the medical insurance scheme as currently constituted and recommend changes to enable it perform to the satisfaction of the members.

Examine all contracts related to the medical insurance scheme and recommend appropriate changes to streamline it to the needs of the end users.

Study and evaluate the medical scheme in relation to other such schemes and recommend changes to improve its efficiency.

Examine the competencies and the existing skills in the NHIF and the corporation’s ability to undertake, manage the Fund and recommend the appropriate changes.

  The board wil be expected to appoint an independent and reputable audit firm to conduct investigations in regard to award of contracts, investments and management systems in the Corporation.

It will similarly review existing policy on Fund investments and recommend necessary changes.

Recommend a new system for the roll out of the healthcare scheme that will be suitable and acceptable to all stakeholders.
It will be expected to propose and develop a system for the management of the Fund.

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