JamboPay bosses sue Haji, AG in bid to stop NHIF fraud trial

Web Tribe Director Danson Muchemi during an interview at the company's office at View Park Towers in Nairobi County, April 3, 2012. PHOTO | EMMA NZIOKA | NATION MEDIA GROUP

What you need to know:

  • Danson Muchemi Njuji and Robert Muriithi Muna on Friday sued the director of public prosecutions, the director of criminal investigations, the attorney-general and a Milimani magistrate's court.
  • The two, who were recently charged with fraudulent acquisition of public property, sued these parties in a bid to stop their prosecution, which they said amounted to abuse of processes.
  • On December 12, Mr Muchemi and Mr Muriithi were barred from accessing their offices, pending a search by police for evidence in the case.

Two directors of Web Tribe Limited have filed a suit against their prosecution over claims of Sh1.1 billion fraud at the National Hospital Insurance Fund (NHIF).

Danson Muchemi Njuji and Robert Muriithi Muna on Friday sued the director of public prosecutions, the director of criminal investigations, the attorney-general and a Milimani magistrate's court.

ABUSE

Mr Muchemi is the chief executive officer of JamboPay, which is registered as Web Tribe.

He and Mr Muriithi sued these parties in a bid to stop their prosecution, which they said amounts to abuse of processes.

They explained that DPP Noordin Haji obtained court orders compelling their company to continue rendering services under its contract with the fund.

On December 11, the DPP obtained orders barring the directors from interfering with the system, except for the benefit of the public.

The accused added that the amount in question was the cumulative payment for provision of integrated revenue collection services as part of the Integrated Revenue Management System.

“The allegation is fictitious, malicious and in total lack of good faith,” they said through their lawyer Stephen Ogolla.

CHARGES

Web Tribe was hired to collect revenue through the Integrated Revenue Collection System (IRCS) on behalf of the NHIF. The contract between the two is dated August 15, 2014.

Mr Muchemi says they were “competitively contracted” by the NHIF in 2014, and that they offer a critical service.

The two directors were, however, charged at an anti-corruption court on December 10 with fraudulent acquisition of public property.

They denied the allegations and were granted release on bonds of Sh3 million of cash bails of Sh2 million.

Mr Muchemi and Mr Muriithi were arraigned alongside 16 people who included NHIF chief executives Geoffrey Gitau Mwangi and Simon Kirgotty.

Mr Mwangi and Mr Kirgotty denied a charge of authorising payment of more than Sh545 million to Web Tribe Limited. This was just one of the 17 counts they faced.

THE PROBE

As part of investigations, the two bosses were barred from their offices on December 12, pending a search by police for evidence in the case.

The company's servers are located at View Park Towers in Nairobi.

The order came after State prosecutor Carol Kimiri urged the court to ensure the preservation of the offices, computers and all documents.

Ms Kimiri noted that all claims to the NHIF are channelled through the company's website, therefore all payments to health institutions which rendered services are submitted to the organisation.

“Unless the accused are barred from accessing the offices, evidence will definitely be interfered with,” she said.

The duo wants the DPP and the DCI barred from prosecuting them or instituting any further charges against them.

High Court Judge John Mativo directed them to give copies of the case documents to the parties before January 21, 2019, when the matter will come up in court.