Raila brokers truce on NHIF scam

By Vitalis Kimutai and Peter Orengo

Prime Minister Raila Odinga moved quickly on Monday a to quench brewing friction in the Grand Coalition Government over an alleged multibillion-shilling scam at the National Hospital Insurance Fund (NHIF). The PM suspended the fund’s entire board for three months after meeting Medical Services minister Prof Anyang’  Nyong’o, NHIF Chief Executive Officer Richard Kerich and acting Head of the Civil Service and Secretary to the Cabinet Francis Kimemia.

On Sunday, Nyong’o had set the stage for acrimony between the two coalition partners, ODM and PNU, when he reinstated the NHIF board that was earlier suspended by Kimemia, and said the action by the Civil Service boss was not only null and void, but also motivated by partisan politics.

When Kimemia suspended Kerich and the NHIF board, he left out the chairman Prof Richard Muga on grounds that he was a presidential appointee.

His decision was, however, rubbished by Nyong’o when he returned from South Africa, who insisted his own suspension of Muga was valid.

But on Monday, Raila brought together the two sides, where it was agreed that the embattled National Hospital Insurance Fund (NHIF) board for three months.

Raila appointed Mr Adan A. Adan, a Deputy Secretary in the Ministry of Medical Services as acting CEO of NHIF, after Nyong’o rejected a name suggested by Kimemia during the meeting.

caretaker board

A caretaker board comprising of representatives from the Central Organisation of Trade Unions (COTU), Kenya National Union of Teachers (KNUT), Federation of Kenya Employers (FKE) and Permanent Secretaries from various ministries will now run the fund.

“I have directed the Efficiency and Monitoring Unit (EMU) in my office to immediately undertake an audit at NHIF,” Raila told a press conference at his office on Monday.

An independent firm will also be appointed by the PM to conduct forensic audit at the parastatal following the spat between the board, stakeholders and contracted medical service providers over payments to a select croup of hospitals for the civil servants’ medical scheme.

Police Commissioner Mathew Iteere separately said his office is closely following the saga and could launch its own investigation.

The saga unfolded last week when board chairman Richard Muga attempted to suspend Kerich and five managers, but board members led by the vice chairman Mr Wilson Sossion overruled him.
Nyong’o shortly thereafter suspended Muga instead and reinstated the CEO only for Kimemia to step in and suspend the entire board minus Muga.

allegations

Kimemia then deepened the crisis further by freezing payments by NHIF to the medical service providers listed under the scheme.

Nyong’o claimed on Sunday that he was aware of allegations leveled against him to the effect that he usually travels abroad to bank money taken from NHIF, with the CEO being his accomplice in the matter.

The minister revealed that audit and management firm, Deloitte would undertake a forensic audit to verify allegations made with regard to the payments.

On Monday the acting Justice, National Cohesion and Constitutional Affairs permanent secretary, Gichira Kibara denied claims by Nyong’o that he (Kibara) met Kimemia, Central Organisation of Trade Unions (Cotu) Secretary General Francis Atwoli and Muga before the NHIF board was suspended.

“The Ministry... has no role in NHIF and I would therefore not be consulted on the issue,” Kibara said in a brief statement.
motion

Earlier, Medical Services assistant minister Kazungu Kambi and Ikolomani MP Dr Bonny Khalwale threatened to introduce a Motion of no confidence against Nyong’o in Parliament.

Dr Khalwale, who is the Public Accounts Committee chairman, said he would consult with other members and lobby MPs to force out Nyong’o, for allegedly shielding the NHIF board and management.

“I would have expected Prof Nyong’o to also suspend the fund’s managers and order for a thorough investigation of this scam to save taxpayers’ money. Instead, he is protecting them,” said Dr Khalwale.

Khalwale made the sensational claim that the NHIF payments were being used by parties he did not name to raise funds for campaigns in the upcoming general election.

Kambi said the insistence by Prof Nyong’o to keep the suspended board members in office was to ensure the release of over Sh700 million to medical facilities, including those with a questionable background.

Mr Moses Nthurima, Kenya Union of Post-Primary Education Teachers (Kuppet) deputy secretary general and Ronald Toni, the deputy treasurer said that the union would demand representation on the NHIF board.

“We are demanding that the proposed increased deduction of monthly contributions by workers to pave the way for universal health cover for Kenyans be put on hold until the row that has rocked the scheme is addressed,” Nthurima said.
And Kenya Medical Practitioners Pharmacists and Dentists Union Secretary General Dr Boniface Chitayi commended Raila for suspending the board.

Chitayi said further disbursements by NHIF to medical providers should be halted until the audit report is released.
The medics also called for the restructuring of the NHIF scheme to make it universal so members could access healthcare services anywhere in the country.