Kerich to Know Fate in Sh96M NHIF Fraud Case

Former National Health Insurance Fund (NHIF) chief executive Richard Kerich and his co-accused will on July 3 learn whether they will be placed on their defence in a case involving the alleged Sh96 million fraud targeting funds meant for civil servants and disciplined forces.

This follows the closure of the prosecution’s case by Senior Assistant Director of Public Prosecutions Daniel Karuri, who told the court that the State had established a prima facie case against all the accused persons.

Six Accused in NHIF Fraud Case

Kerich is charged alongside former NHIF assistant manager David Chingi, Marwa Fadili Chacha, Toddy Mahadana, Anthony Kalathir Chako, and Clinix Healthcare Limited.

The six are accused of conspiring to defraud NHIF of Sh96 million by irregularly causing the fund to enter into a contract with Clinix Healthcare Limited for the provision of medical services to civil servants and disciplined forces outside Nairobi County, despite the firm allegedly lacking the capacity to deliver the services.

No Procurement Process Followed, Court Told

According to the prosecution, NHIF failed to follow the Public Procurement and Disposal Act, 2005, in identifying and engaging service providers for the civil servants’ medical scheme.

Karuri submitted that there was no competitive bidding process, resulting in Clinix Healthcare Limited being given undue advantage over other qualified medical providers.

“There was no public procurement conducted as required by law, and Clinix was irregularly awarded the contract,” Karuri told the court.

Witnesses Testify Against Accused

The prosecution called a total of 28 witnesses, whose testimonies, Karuri argued, demonstrated how the accused persons orchestrated the scheme.

He further stated that Clinix Healthcare Limited did not have accredited medical facilities outside Nairobi, raising questions about its ability to offer services under the contract.

NHIF Official Confirms Irregularities

NHIF Procurement Manager Pamela Nyaboke Marendi testified that the fund did not follow any procurement procedure in selecting providers for the civil servants’ medical scheme.

“The prosecution submits that it has established a prima facie case against the accused persons on all counts and prays that this honourable court places them on their defence,” Karuri concluded.

The court is expected to rule on July 3 whether the accused persons will be required to defend themselves.