NHIF: Civil servants lose life cover as DCI swoops in

Geoffrey Mosoku  More than 320,000 civil servants do not have life insurance cover after detectives moved in to investigate a Sh890 million deal sealed by the National Hospital Insurance Fund (NHIF).  Although NHIF signed the multi-million shilling deal with a consortium of insurers led by Jubilee Insurance more than two months ago, its implementation has stalled as detectives probe  suspected irregularities. The consortium of three insurance firms: Jubilee, Madison and Gemenia won the contract worth Sh890,455,966 on February 12 after emerging the lowest evaluated bidder. SEE ALSO :Desperate families turn to social media for medical funds appeal
However, one of the losing consortia moved to the Public Procurement Administrative Review Board (PPARB) to contest the the award.

Upheld decision

On Tuesday, March 19, PPARB upheld the decision to award the deal to the consortium of insurers led by Jubilee paving the way for contract signing. But as soon as the insurers and NHIF signed the deal, detectives moved in to investigate suspected irregularities in calculating premiums. The move affected more than 150,000 workers at both national and county governments, 162,000 police officers and prison officers and 8,000 employees of parastatals and State agencies who have been left without life cover. Officers from the Directorate of Criminal Investigations (DCI) are said to have carted away vital documents for the tender including the signed contract, invoices and vouchers. SEE ALSO :CS banks on NHIF reforms to drive universal coverage
Yesterday, John Kariuki, DCI’s head of investigations, who wrote to ask for the documents, refused to comment and instead referred The Standard to his boss George Kinoti. But Mr Kinoti, who was on the way to Washington, USA, failed to divulge details when reached for a comment only confirming that NHIF was on police radars. “NHIF are on our milking pen,” he said. The NHIF board chairperson, Hannah Muriithi confirmed that detectives carted away documents but allayed fears the contract had been stopped to pave way for investigations. “There has been an ongoing audit of our systems and the DCI has been conducting investigations on several issues. Thus the investigations are not specifically on this contract and there is no directive stopping any payments,” said Ms Muriithi.

Managing trustee

SEE ALSO :Coast civil servants in shock as NHIF alters cover
Acting NHIF boss Nicodemus Odongo said he has been out of the country and was not in a position to give us a concrete comment. He however said the delay has not affected police officers who are covered separately. “I have been away. When I go to the office, I will be briefed then I will be able to comment. In the meantime police cover is totally different from civil servants. All of them are under the NHIF as per each contract and payments duly made when they fall due,” he said. On May 8, Jubilee Insurance forwarded debit note of Sh455,227,983 being the first installment for the group life and last expense insurance cover for over 320,000 civil servants. And on May 30, the insurer wrote a reminder letter in which it stated: “Attached here is our invoice No. 02.2019 for Sh455,227,983 being the first installment of the annual premiums payable as per the contract terms. We look forward to receiving your remittance as confirmation of the payment.” SEE ALSO :Unpredictable policies hurting investors, says FKE
The letter was signed by Jubilee Insurance Regional Chief Executive Officer Julius Kipngetich. The tender NHIF/033/2018-2019 Group Life and Last Expense covers civil servants in national and county governments and a number of other institutions. The tender for police coverage was first advertised on December 11, 2018. In the civil servants scheme, officers in job group A-G are entitled to a Sh700,000 for group life and Sh100,000 last expense while the senior ones are entitled to Sh30.8 million for group life and Sh300,000 for last expense. National Police Service members are only entitled for last respect with all cadres entitled to Sh250,000. In parastatals and other institutions, the low cadre of workers are entitled to Sh850,000 for group life and a Sh120,000 last respect while senior staff are entitled Sh5 million for group life and Sh300,000 for last respect.