Nyong’o, Otieno face NHIF probe

A parliamentary committee wants two Cabinet ministers investigated for their alleged role in the NHIF scandal.

In its final report seen by the Nation, the committee on health wants the Ethics and Anti-Corruption Commission (EACC) to investigate Medical Services minister Anyang’ Nyong’o and his Public Service colleague Dalmas Otieno.

The committee wants the two probed over the alleged irregularities in the medical insurance scheme for civil servants.

The MPs also called for the investigation of other top officials in the Medical Services ministry and the National Hospital Insurance Fund.

Those to be investigated include Medical Services permanent secretary Mary Ngari, the Director of Medical Services, Dr Francis Kimani, the Registrar-General Bernice Gachegu, former NHIF chief executive Richard Kerich and all members of the former NHIF board.

The investigations should be completed within three months, the committee chaired by Nyaribari Chache MP Robert Monda, directed in its report expected to be tabled in Parliament on Thursday afternoon. (READ: New report questions waste, secrecy at NHIF)

“The committee recommends that the Ethics and Anti-Corruption Commission institutes investigations into the following persons with a view to ascertaining their roles in the irregularities in the scheme, including the pilot phase,” the report notes.

The team expressed concern over Prof Nyong’o’s involvement with Mr Jayesh Saini, the owner of Clinix Healthcare Ltd, one of the clinics at the centre of the scandal.

The minister admitted that he had met Mr Saini several times despite being aware that he was doing business with NHIF and that his involvement in the scheme’s pilot project could have given Clinix Healthcare Ltd undue advantage.

Ms Ngari and Dr Kimani were faulted for not doing enough to investigate the alleged irregularities in the roll-out of the scheme.

The committee ruled that Prof Nyong’o had no powers to suspend the former NHIF board chairman, Prof Richard Muga, as only the President can effect such suspension.

Similarly, Prof Muga did not have powers to suspend the former CEO without the board’s express resolution. The committee accused the registrar-general of interpreting the law in a skewed manner to favour Clinix Healthcare.

“Such selective interpretation of the law by the State Law Office only exposes the country to risks associated with possible registration of companies owned or associated with persons of adverse character,” the committee said.

It said that Mr Saini could not explain why he registered Pharma Holdings, the parent company of Clinix, in an offshore island country while it trades in Kenya.

It also recommended that the CEO of Clinix Healthcare Ltd, one Zac Toddy Madahana, be investigated for presenting false evidence before it.

Prof Muga on his part is to be investigated in connection with reports that he owns Star Hospital, one of the private service providers which participated in the scheme.

However, the committee recommends that the government ensures that the medical insurance scheme is not discontinued.

Both President Kibaki and Prime Minister Raila Odinga have previously intervened in the NHIF saga with the President last week demanding a speedy investigation.