Troubled NHIF Board suspended

The National Hospital Insurance Fund (NHIF) board has been suspended over the controversial Sh4.2 billion civil servants medical cover scheme.

Head of the Public Service Francis Kimemia said the government will appoint a caretaker board next week as investigations into the saga start.

"....the immediate suspension of the entire Management Board including the Chief Executive Officer (CEO)," said Mr Kimemia in a statement.

"This will pave way for the appointment of a Caretaker Management Board and the conducting of investigations into the alleged malpractices in the institution."

On a day of high drama, Prof Nyong'o suspended NHIF chairman Richard Muga, who had minutes earlier announced Mr Kerich's suspension and appointed George Midiwo to take over in an acting capacity with immediate effect.

While the drama was being played out at the NHIF headquarters in Nairobi’s Upper Hill, a committee of MPs was being told how one medical services provider was paid Sh100 million advance for the civil servants medical scheme even before some of the clinics were put in place.

Clinix, whose ownership is also being questioned by the parliamentary Committee on Health, opened about 50 of its 71 outlets between January and Thursday, a period covering the first quarter of the NHIF rollout scheme for public servants.

Records before the team investigating how Clinix Healthcare and Meridian Medical Group were selected by NHIF indicate over 20 accredited outlets of the former were not registered at the time they were paid by NHIF.

In total, both health providers were paid Sh318 million for 88,000 principal members and their families.