The National Health Insurance Fund (NHIF) has been directed to recover millions of shillings paid in salaries to 11 individuals who were illegally hired as employees.
The National Assembly Committee on Health issued this directive on Tuesday, August 8th. The order to recover the money came as part of the government’s intensified efforts to combat corruption.
While issuing the order, the committee revealed that the eleven employees had been unlawfully recruited into various positions at NHIF in September 2020.
Committee Chair Robert Pukose, who is also the Member of Parliament for Endebess, emphasized that this irregular recruitment had resulted in the misappropriation of taxpayers’ funds, a particularly concerning issue during challenging economic times.
Pukose stated, “The financial loss due to these irregular appointments is substantial. We have instructed NHIF to retrieve the funds.”
In June of this year, Pukose had instructed NHIF to retain the accused employees, who were facing the risk of job loss amidst ongoing investigations into their improper hiring.
Health Cabinet Secretary Susan Nakhumicha had previously invalidated the appointment of a new CEO. The appointment was intended to replace Peter Kamunyo after his term expired in March.
NHIF ordered to halt the procurement of ERP
Additionally, the committee ordered NHIF to cease the procurement of a Ksh4.2 billion Enterprise Resource Planning (ERP) system. The system was meant to replace an existing platform that had already cost the agency Ksh1.6 billion.
An ERP system is software designed to manage various aspects of organizational operations, including accounting and resource management. At NHIF, this system maintains data related to subscribers, medical facilities, and human resources.
Despite explanations from Acting NHIF CEO Samson Kuhora about the necessity of the new system, Pukose revealed plans for committee members to meet with ICT Principal Secretary John Tanui and the service provider to evaluate whether the current system’s shortcomings warranted a costly upgrade.
Kuhora also lamented how the inefficiency of the current system was impacting service quality nationwide.
Pukose expressed concerns about the need for a new system. He stated, “They cannot justify procuring a new system that will only burden taxpayers. They first have to clearly identify the deficiencies in the current one.”
Tanui and the service provider will assess the current system’s effectiveness. They will then advise the committee on whether the multimillion-dollar overhaul is warranted.
Investigation on insurance scam
The committee also scrutinized NHIF executives following an exposé that uncovered a coordinated scheme leading to improper disbursement of funds to specific hospitals, disadvantaging other facilities.
Pukose disclosed that approximately 67 hospitals were implicated in this multibillion-shilling scandal. He questioned the rapid increase in funds allocated to certain facilities. Pukose also pledged that those responsible for misappropriating public funds would face prosecution.
