Releasing Mr Kerich alongside Fadhili Marwa Chacha and David Chingi, Senior Principal Magistrate Martha Mutuku said the prosecution had failed to prove conspiracy charges against the three persons.
The court faulted the prosecution saying no audit report was tabled before her to prove loss of money.
The court heard that over 300 facilities were contracted to provide outpatient services to civil servants and the disciplined forces.
The three were charged together with two directors of Clinix Healthcare Limited — Toddy Madahana and Anthony Kalathir Chacko.
Former National Hospital Insurance Fund (NHIF) managing director Richard Kerich and two other managers were yesterday freed by a Nairobi court after prosecution failed to prove fraud charges against them.
Releasing Mr Kerich alongside Fadhili Marwa Chacha and David Chingi, Senior Principal Magistrate Martha Mutuku said the prosecution had failed to prove conspiracy charges against the three persons.
The court faulted the prosecution saying no audit report was tabled before her to prove loss of money.
Mr Kerich, Mr Chacha, who was the insurer’s manager for strategy and corporate planning, and Mr Chingi, former assistant manager benefits and quality, were charged with conspiracy to defraud the Fund, failing to comply with procurement laws and abuse of office.
The three were charged in 2013 with conspiring to defraud the fund of Sh96.5 million through a contract with Clinix Healthcare Ltd to provide healthcare for civil servants and disciplined forces between January and March 2012.
The court heard that they awarded the contract to Clinix well aware that the facility did not have the capacity to execute it. Clinix had been allocated over 67,000 members amid allegations that the hospital did not have facilities outside Nairobi.
Ms Mutuku said there was no “iota of evidence” to show that the accused persons introduced any clause or amendment in the tender document that would have rendered the contract illegal.
She said there was evidence that the Fund’s legal department was consulted over the matter.
She also freed them of charges of abuse of office.
The court heard that over 300 facilities were contracted to provide outpatient services to civil servants and the disciplined forces.
The three were charged together with two directors of Clinix Healthcare Limited — Toddy Madahana and Anthony Kalathir Chacko.
Clinix and its directors were also acquitted after the court found that no member of NHIF testified in court that the facility did not have the capacity to provide the services as alleged.
The court also said that there was no evidence to show that the facility obtained money by false pretence.
