NHIF on the spot over loss of Sh200 million

 

The National Hospital Insurance Fund (NHIF) is on the spot over missing Sh200 million that was to be refunded after lapse of police and prison officers medical cover.

On Thursday, NHIF Chief Executive Officer Dr Peter Kamunyo failed to explain to MPs the whereabouts of the cash that is owed to the Ministry of Interior.

The excess of loss amount was part of the Sh4.79 billion comprehensive medical cover awarded to NHIF on September 26, 2017, to cushion the members of the National Police Service who might exhaust their cover limits.

The insurance cover was for a two-year period – from October 1, 2017 to September 30, 2019. But it was extended from October 1, 2019 to June 30, 2020.

According to the tender documents signed by the Interior ministry, the parent ministry for police and prison officers, National Treasury and NHIF, the amount was refundable at the end of the contract period.

The failure to refund the money has been flagged by Auditor General Nancy Gathungu in the 2018/19 financial accounts report for the Interior ministry.

The audit report further cites the Interior ministry adversely over its failure to account for the money that the NHIF has failed to refund.

Cover limit

On Thursday, when he appeared before the Public Accounts Committee (PAC) of the National Assembly, Dr Kamunyo could neither explain why the money had not been refunded nor provide a breakdown of how it was expended if indeed some officers exceeded their cover limit.

“Your failure to comply as required by the law led to the Ministry of Interior being cited adversely,” Ugunja MP Opiyo Wandayi told Dr Kamunyo on Thursday.

Dr Kamunyo, who would later be dismissed by the committee to get the required information, had claimed that the money had been used and that there was a balance of Sh5 million.

He however, did not provide proof of the expenditure to the committee, a move that saw the committee members Aden Duale (Garissa Township), Joseph Ngugi (Gatanga), Dr Wilberforce Oundo (Funyula) and Dr Eseli Simiyu (Tongaren) question the CEO’s sincerity.

“Just tell us where the money is or provide a breakdown of how it was used if indeed the limit was exhausted,” demanded Mr Duale.

Ms Gathungu notes that failure to show proof of the expenditure makes it not possible to determine whether the NPS got value for money that was due for refund at the end of the comprehensive medical cover contract.   BY DAILY NATION