Tax haven joins NHIF scam probe

A tax haven has promised to help Kenya establish the identity of the shadowy owners of a company at the centre of the National Health Insurance Fund civil servants medical scheme scandal.

The British Virgin Islands, a haven for Africans who want to hide fortunes looted from struggling economies, pledged to help name the owners of a company which owns Clinix Limited, the company at the centre of the NHIF scandal. Revelations of the pledge were made as a parliamentary committee prepares to table the report of its investigations into the scandal where companies without clinics were paid to provide civil servants with medical services.

Dr Orlando Smith, the prime minister of the islands promised to help name the directors if Kenya made a request, according to Vice-President Kalonzo Musyoka.

Speaking on Sunday evening when he returned from an overseas trip, Mr Musyoka said Dr Smith pledged to ensure that crooked people do not steal from poor Kenyans and stash the proceeds in his country.

“I was with Dr Smith and he promised me that he will not allow any Kenyan with suspect money to open an account in their country and deposit it for personal gain,” Mr Musyoka said.

“I held discussions with senior government officials during my trip and they promised that they would assist in investigations on the matter. I am confident we will get to the bottom of the issue.”

He was speaking at the Jomo Kenyatta International Airport on return from China.

In the House, MPs, who are reported to be deeply divided, were still puzzled by the ownership of Pharma Ltd, which owns 99 per cent of Clinix Limited, the company which was contracted to provide medical services to civil servants by NHIF. Read (Death threats, bribery mar report on NHIF)

The other one per cent is owned by Beneficial Ltd. A businessman, Mr Jayesh Saini, claimed he owned Pharma, an assertion MPs doubt since he could provide no documentary proof.

They could not understand why a Kenyan, who lives in Kenya could register a company, which intended to trade in Kenya, in a secretive tax haven.

The committee felt that there was “deliberate omission” by the Registrar of Companies with respect to indentifying the directors of the companies.

The registrar, Ms Bernice Gachegu, told them that her office did not have documents of the company’s registration in BVI.

Committee chairman Dr Robert Monda said members had reasons to believe that those behind Pharma Ltd “are persons of undesirable character”.

“You will remove those doubts only when you have done due diligence on your part to give us the names of the directors,” he told the Registrar when she appeared for questioning on the company’s ownership.

The Daily Nation was informed that the departmental committee on health, which has been investigating the NHIF scandal, might give the Attorney-General three months to provide the identities of the shareholders of Pharma Ltd as well as TBL Mirror Fund, which owns 16 per cent of Meridian Medical Centre, the other company contracted alongside Clinix.

State Counsel Margaret Wangu told to the committee that directors of Clinix Healthcare according to the records held by the Registrar, were Mr Jiwanatil Chandara Dabral and Mr Antony C. Kalatil Chacko.

The two were introduced to the committee as representatives of Beneficial and Pharma Holdings together with Mr Zac Toddy Madahana who was said to be the Clinix Chief Executive Officer.

The committee gathered in its investigation that Clinix Healthcare was registered in Kenya within 16 days of Pharma’s registration in BVI in 2006. It was registered on May 19, 2006 while Clinix was registered on June 6, 2006 in Kenya.

The Registrar said her office relies on documents presented by foreigners for registration and does not verify them so long as they are certified by notary public.

She shocked the committee stating that her office does not conduct any background checks to confirm authenticity and credibility of foreign companies that seek partnership or incorporation in local companies, a position the committee said has paved way for criminals to engage in businesses locally.