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Kenya Wildlife Service entangled in insurance anomalies that may cost taxpayers Sh40m

COUNTIES
By By Geoffrey Mosoku | May 25th 2013

By  Geoffrey Mosoku

NAIROBI, KENYA: The Kenya Wildlife Service (KWS) may now terminate an insurance cover with CIC Insurance Company after an internal audit committee established anomalies that may have cost taxpayers Sh40 million over irregular insurance dealings.

Documents in our possession, indicate that the monies were lost when KWS undertook to procure insurance policies directly from CIC, in June last year.  CIC was brought on board to offer both general insurance to all KWS vehicles and Group Life Insurance (GLA) to the corporation’s employees.

In March this year, KWS appointed a nine-member committee, Insurance Advisory Committee when some senior managers complained about the tender, and recommended that the services of CIC be terminated. However, its report has not been implemented, with only one week left, to May 31 May, when it’s due to expire.

Issues of accounts

KWS head of Audit Moses Muli chaired the committee, with other members being Valentine Kanani (Head Human Capital), Daniel Onsembe, Michael Musyoka, Bernard Terer, James Sambu, Ettah Muango, Jonathan Kirui and Bancy Njuguna (Head of Insurance).

The Advisory Committee found that the corporation lost Sh19,716,218.30 after it defied a Government circular in GLA which from the Treasury that requires all State corporations to calculate insurance premiums on the basis of three years’ salary. However, the policy of CIC calculated on a five-year basis and thereafter charged KWS Sh49,290,545.50 instead Sh29,574,327.18.

The minutes of the Advisory Committee further stipulate that KWS lost another Sh16,599 and Sh590.92 in circumstances where CIC overcharged them by issuing double insurance on one vehicle. This mainly affected vehicles that are used for security operations, which the corporation uses two sets of number plates; an official blue parastatal number and a private one.  CIC also overcharged KWS an extra Sh3,679,228 by issuing a policy based on tender documents and not the actual value of the insured vehicles.

On May 2013, CIC managing director Kenneth Kimani wrote to KWS confirming that they had overcharged the Sh16,599 and Sh590.92 that he said had ben arrived from using tender estimates and not the actual value of vehicles to calculate premiums.  “However, we note there have been additional transitions per premium. Please confirm if we may proceed to credit your account with net refund of Sh8,855,717.92,” Kimani’s letter states.

KWS director William Kiprono  could not be reached for comment as he was said to be out of the country until next week.  CIC Managing Director Kenneth Kimani on Friday confirmed that he had written the letter but downplayed the matter, saying someone was trying to create a scam where none exists.

“This is simply issues of accounts. How can reconciling an account be a story?” Kimani said when contacted for comment.


 

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