I’ll recover NHIF money: Tobiko

The full extent of the alleged fraud perpetrated against the National Hospital Insurance Fund by its top managers and directors of two healthcare providers will emerge when the corruption case against them opens later this month.

The Office of the Director of Public Prosecutions indicated to the High Court last Wednesday that it has credible evidence to sustain conviction of the former NHIF chief executive Richard Kerich, senior managers Marwa Chacha and David Chingi, and four directors of Clinix Healthcare and Meridian Medical Centre.

Director of Public Prosecutions Keriako Tobiko said he will pursue the suspects to recover millions in taxpayers’ money alleged to have been corruptly obtained from the insurer. 

Mr Kerich and the managers are charged along with the directors of Clinix — Dr Anthony Chako and Mr Toddy Madahana — with conspiracy to defraud the insurer of Sh96.5 million meant for provision of medical services to civil servants and members of the disciplined forces.

In subsequent criminal charges, the NHIF managers are accused of colluding with Meridian directors, Mr Peter Ngunjiri Wambugu and Mr Ndiba Warioko, to defraud the fund of Sh116.9 million in the medical scheme.

MORE THAN 40 WITNESS TO TESTIFY

More than 40 witnesses have been lined up to testify against the suspects on various counts, ranging from conspiracy to swindle the fund manager, failure to comply with procurement rules, abuse of office and obtaining money by false pretence.

Soon after the DPP gave the nod to charge Mr Kerich and his co-accused, Clinix and Meridian separately moved to the Constitutional Division of the High Court seeking to terminate the charges on grounds they violated fundamental rights and freedoms.

They claimed they had not committed any offence to warrant being subjected to the humiliation of a criminal trial, arguing that in the absence of any prima facie case, the charges bordered on extreme malice and ill-will towards them.

Through lawyer Kioko Kilukumi, the Meridian directors told Justice George Odunga that unless the criminal proceedings in the magistrate’s court were stayed, there was the likelihood they would be convicted and lose the liberty to challenge their innocence in the High Court.

However, Justice Odunga declined to stop the proceedings. “There is no threat of imprisonment for now. In any case, the hearing of the criminal case is yet to commence, and the suspects have not even been placed on the defence,” he observed.

Mr Wambugu and Mr Warioko had argued that if they were charged in court, they would lose both in their calling and busines, and urged the judge to block the DPP from instituting corruption charges against them.

The DPP said the decision to charge Mr Kerich and his co-accused was informed by the tangible evidence on record and public interest and not any other consideration.

“The accuracy and correctness of the evidence and facts gathered in an investigation can only be assessed and tested by the trial court,” submitted the DPP, who urged the court to dismiss the petition by Meridian.

COULD SUE GOVERNMENT

Justice Odunga concurred, but he warned that if it turned out that the criminal process was invoked maliciously and without warranted cause, the accused could sue the government.

Clinix directors Chako and Madahana, through lawyer Jothan Arwa, argued that various government agencies had given the two companies a clean bill of health after it was concluded that there was no corruption, and NHIF had not lost any money in the medical scheme.

Meridian, Clinix, Thika Road Health Services and Nairobi West Hospital won an NHIF tender to provide healthcare services to civil servants and members of the disciplined forces on December 3, 2008.

Documents tabled in court showed that Meridian was chosen by 34,824 civil servants and members of the disciplined forces and was paid Sh116.9 million, while 58,600 settled for Clinix, which was paid Sh202 million.

The accused are out on cash bail awaiting trial before the anti-corruption court in Nairobi.