Economy

MPs probe more clinic owners in NHIF cash saga

kazungu

Medical Services assistant minister Kazungu Kambi addresses a press conference at Parliament Buildings on May 4, 2012 when he disagreed with his minister over the decision to suspend the NHIF board chairman, Prof Richard Muga. Photo/Jennifer Muiruri

The storm over alleged theft of funds at the National Hospital Insurance Fund (NHIF) is set to continue in the wake of the suspension of the board and its reinstatement.

The entire NHIF board was disbanded by acting head of public service Francis Kimemia after a parliamentary committee on health matters raised concerns over the manner in which millions of taxpayers’ funds were allocated to ghost clinics.

However, on Sunday Medical Services minister Anyang Nyong’o reinstated the board with the exception of the chair, Prof Richard Muga.

On Monday, the parliamentary Health Committee will interview some of the 10 service providers on its list as the country prepares for what could be a national strike against the NHIF, organised by the Central Organisation of Trade Unions (Cotu), in a week’s time.

Federation of Kenya Employers maintains the crisis in the board has been engineered by forces hell-bent on ramming through the expanded NHIF scheme and are using government-linked directors to push it through despite opposition from the rest of the board.

It expects the proposals to be renegotiated this week. “What is coming out now is the simmering disagreement between those members who thought the scheme was being rushed and those who supported it. It is important that parastatals are run independently,” said FKE executive director and NHIF board member Jacqueline Mugo.

Opposition to the scheme and the board has swiftly built up after last week’s public wrangling even as it emerged that NHIF have been dishing out public money liberally.

Parliament last week learnt that a service provider, Clinix, received Sh202 million of which Sh91 million went to non-existent clinics to cover Civil Servants.

Yet another, Meridian, received over Sh116 million out of which Sh30 million was allocated to yet-to-be-opened clinics.

Vice President Kalonzo Musyoka a week ago asked for the suspension of the scheme which has been vociferously defended by Medical Services minister Anyang’ Nyong’o and his charges.

MPs are demanding dissolution and thorough investigation of the board following the reported suspensions of the CEO Richard Kerich and the board chair Prof Muga last week.

They have promised to invoke provisions of the Constitution to have all those involved in the scandal charged in court if the government fails to act on the allegations of financial improprieties.

The saga deepened when Prof Nyong’o's assistant Kazungu Kambi disagreed with the minister’s decision to suspend Prof Muga for taking the same measure on the CEO.

“I plead with the PM to move and ensure that Muga is reinstated and investigations launched to get to the bottom of this scandal; there is no way in this century that Kenyans can pay millions of shillings to ghost clinics,” the assistant minister said at a press conference on Friday.

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