Firm in bid to stop fraud probe on hospital fund

A medical provider alleged to have swindled millions of shillings from the national health insurer has gone to court in a bid to stop its directors’ prosecution.

Clinix Healthcare and directors Anthony Chako Kalathil and Jiwal Dabral want the Ethics and Anti-Corruption Commission stopped from arresting, charging the directors.

Through lawyer Jotham Arwa, the hospital and directors said they had not committed a criminal offence since they provided services to civil servants and members of the disciplined forces as agreed in the contract with the National Hospital Insurance Fund.

“The intended prosecution is a violation of their rights,” Mr Arwa said.

The directors were apprehensive that they would be charged like former hospital insurance fund boss Richard Kerich and Meridian Medical Centre directors with conspiracy to defraud, he added.

Mr Kerich and two hospital fund managers were charged on October 2 with conspiracy to defraud the organisation of Sh116.9 million by entering into a contract in which Meridian Medical Centre was to provide services under the civil and disciplined services medical scheme.

Mr Arwa said the charges are faulty as several government institutions had investigated the matter and found that no money was irregularly paid to Clinix Healthcare and Meridian.

“Government agencies, including Parliament and the Attorney-General, found that there was no corruption involved and that National Hospital Insurance Fund did not lose any money. They even cleared fund, Clinix and Meridian of wrongdoing and it is surprising that the ethics team decided to bring up criminal charges,” Mr Arwa said.

The hearing was set for October 30.