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Investigations

Looting Of NHIF, The NYS Of Healthcare

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NHIF CEO Geoffrey Mwangi

NHIF health is under the corruption virus attack with allegations of misappropriation of funds. With eyes on the CEO Mwangi, questions are being raised on the unexplained expenditures of Sh3.B. NHIF CEO approved the construction and completion of a multi-storey car park at a contract sum of Sh. 909, 709, 305. Records available however indicate that the contract sum was later revised upwards to Ksh. 1,179,611,756 representing approximately 30% increase above the original contract sum of Sh909,709,305. This extra expenditure was unwarranted and led to the loss of public funds and a clear contravention of procurement Finance Management Act 2012.

Although records available indicate the car park was completed at a total cost of Sh.3,342,120,239, a further amount of Sh.626,635,998 and Sh.4,706,521 was incurred without pre-requisite approval increasing its total expenditure to Sh.3,973,462 resulting to an increase of approximately 337% over and above the original cost has never been accounted for.

Loss of Sh500M; Some hospitals in cooperation with NHIF senior management made false claims with the intention to defraud NHIF using members’ cards without their consent and claiming for services not performed. The CEO claimed that the public loses more than Sh.500,000,000 monthly in this well-crafted scheme. In light of this admission, by Mr. Mwangi, the board has not taken any definite action to stop the fraud not has anyone been prosecuted. It remains just that as the unsuspecting public gets squandered.

The CEO of NHIF has over the years been unable to account for a parcel of land NO.LR 24968/2 measuring 20 hectares located at Karen in their bio of accounts. Besides, the ownership of the particular parcel of land is in dispute. NHIF acquired the piece of land in at the cost of Sh.93,712,675 to construct a resource center. It commissioned consultants to carry out a feasibility study on the development of a resource center in the area. The consultants did the work as commissioned and submitted their report together with their fee noted for Sh.734,524,029.25. However, NHIF didn’t honor the fee notes because the management had not received prior approval for the works from parent ministry.

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The situation resulted in a dispute which was referred to arbitration. The high court later ordered NHIF to pay the consultant Sh.407,107,645 representing principal sum and interest. Even after spending these large sums of money, of public funds in consultancy and purchase, NHIF doesn’t have a land nor resource center to show as the ownership of the land in question is in dispute still in court.

The CEO of NHIF has paid contractors a sum of Sh1,144,787,484 in respect to drawings and designs of the proposed resource center whose construction has not yet commenced even after such huge funds was made thereby leading to loss of public funds.

The accounting officer of the National Hospital Insurance Fund has failed to account for Sh63,530,668 with regards to payments for consultancy fee to a consultancy firm. The amount wasn’t budgeted for and hence the said budget was in contravention to the state corporation Act, Cap 446 Section 12 which states that no corporation shall operate without the prior approval of the Cabinet Secretary, the board of trustees, and the national treasury incur any expenditure for which provision has not been made in an annual estimate prepared and approved in accordance with section 11.

Provision of impaired investment amounting to Sh45.9Million was offset by the Consolidated Bank of Kenya against a guarantee executed by NHIF CEO on behalf of Euro Bank Limited. It is not clear the manner in which public funds are used therefore questioning the credibility and integrity of the CEO. Uncollected revenue of Sh.597,828,290 over an extended period and only provisions for bad and doubtful debts of Sh.152,730,066 for outstanding contributions have been made in the accounts. It’s however unclear the necessary measures taken to recover these funds.

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The open looting at NHIF that threatens the realization of UHC should be of great concern to the President who needs now more than ever a team of competent managers holding offices. NHIF being a strategic body doesn’t require the questionable leadership of marked frauds like Mr. Mwangi whose integrity is in question with accountability nightmares clouding his stay in office.

The president has made it clear that he’s not in the business of protecting anyone and those found with their hands in the cookie must face the music. It is in the same breath that DPP Noordin Haji has given his surety to go after the big fishes. As the multi-agency graft unit of NIS, DCI, ODPP, EACC and OAG goes into a brawl, NHIF should be on their topmost prioritized as this is a fertile ground to fish out paper gangsters.

 

Find the NHIF audit report by Office of Auditor General below. 

national hospital insurance fund


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Investigations

How Flying Squad Trailed And Arrested Police Officers Who Raided A Malian Citizen’s Home In Kilimani Stealing USD 8,000 In Cash

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Flying Squad officers have arrested one police officer & are in pursuit of others following a report made by one Bathily Abdoulaye, a Mali national, who had reported that on 15/09/2018 four police officers from Nrb Area command came to his Kilimani residence and arrested him.

In the process of the arrest the officers ransacked his house and took the following items: 8,000 US Dollars,Ksh.83,000, 3 Rolex watches each valued at 15,000 US Dollars, his passport and also transferred Ksh.30,000 from his Mobile phone number to another Mobile phone number.

The complainant was then escorted to Central Police Station where he was later released without being officially booked in the Occurrence Book. Thereafter, the same officers still continued demanding from him an additional 8,000 US Dollars which prompted him to report the DCI.

Flying Squad  officers laid an ambush at Yaya center where the money was supposed to be delivered & in the process managed to arrest one suspect namely Moses Njogu Njagi who led officers to Central Police Station where No.88724 PC Kelvin Ndosi of DCI Central was arrested.

The passport of the complainant was recovered from the arrested officer. The Flying Squad is still looking for the other rogue officers including one driver attached to the County Criminal Investigations Officer,Nairobi Area.

Cases Of Police Officers engaging in criminal acts are not new in the city and this just adding to the pile of many cases. With the purge on illegal immigrants, rogue officers have taken advantage and many foreigners are complaining about harassment.

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Britania Foods Ltd CEO Robert Kagundah’s Days At Britania Numbered As Sales Director Shown The Door

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Britania Foods CEO sampling out some of the company’s products.

Mr Robert Kagundah, a former Coca Cola executive, was appointed to take charge of the business now renamed Britania Foods Ltd after acquisition from Manji foods by Catalyst Principal Partners and for Manji Foods, previously House of Manji, is Kenya’s market leader in the biscuits category with a market share of 27 per cent in 2016, according to data from research firm Euromonitor, it was a good gamble for the investors, however, that hasn’t been the case.

Britania has been making losses and notice to the CEO to restructure the company to profitable heights has hit a dead end with steady losses that now rolls.

Britania Foods Limited workers have accused the top management of irregularly running the company that was in 2017 acquired by Nairobi-based private equity firm Catalyst Principal Partners.

All is not well at Britannia Foods Limited following allegations that workers have been turned into slaves with sexual exploits being at the centre of management.

Currently in hands of private equity firm, Catalyst Principal Partners, all eyes are on chief executive, Robert Kagundah popularly known as RK on whom all eyes are focused. Not left out is Elijah Maina, the sales director of the firm. The duo is alleged that in order to satisfy their social urge, they award contracts and employment opportunities to females they befriend.

Kagundah out of the blue, awarded a catering and cake supply contract to Civa Cakes, associated to Cynthia Orenge. The said Orenge has introduced a lady by the name Charity Muema to Maina and her firm CM commodity suppliers is to land a major wheat supply deal running into millions of shillings.

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Kagundah met Ms Orenge at Karen Country Club. She was sacked at the club after she was found in a compromising position inside Kagundah’s car at the parking.

At Britannia, Kagundah manipulated a Somali tycoon, a one Mohammed and acquired a Mercedes Benz registration number KCD 227B. Mohammed had supplied the company with a number of Toyota Fielder cars for the sales department.

Britania is fully owned by Catalyst Principal Partners after being purchased in early 2017 from the Dawda family. Our sources indicate that cooked books may have been used to dupe Catalyst into buying the loss-making company.

By the time Catalyst found out, it was too late. CEO Robert Kagundah and his sales manager, happen to be best friends, forming an axis of acute corruption that no one at the company can stand up to.

The plan involves working in cahoots with distributors, to dupe the board and management that they are meeting sales targets.

A distributor would for example order biscuits worth Ksh 10 million, and Elijah and his team would report that figure has been met, regardless of whether the distributor sells or not. The distributor would then return back the stock after about three months, very close to the expiry date.

Britania hence ends up losing tens of millions every quarter, and rumors are that Kagundah is paid handsome amounts in kickbacks together with Sales Director Elijah Maina.

Catalyst has since sacked the sales director over non performance and the steady loss making. This can be seen as a blow to the CEO who has now lost s confidant. Britania would be keen to get its brand on straight line by doing away with scandalous characters in its management and more so have performers as opposed to mediocres.

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Investigations

Thigh Pain That Killed A Three Year Old Girl In The Theatre At Kenyatta Hospital Parents Say It Was Doctors Negligence

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Peninah Kadogo, the deceased.

On a normal day on Monday, Penina Kadogo after a long day playing, complained to her father, Mathew Kitito about pain in his leg, “Baba naskia uchungu kwa mguu.” The father recalls. He had assumed this was probably a minor injury incurred during their plays with peers during the day. Unknown to him, this would be the start of a short, sad journey and the end of him seeing his daughter alive.

As a precaution, he opted to take her to the hospital for a quick bone check up. Talking to Kenya Insights, the father says a Dr. Tende at Kenyatta National Hospital checked and recommended for an X-ray, ultrasound checks. He was also referred to a bone diseases specialist a Mr. Ndeda.

After tests And deliberations, it was decided for the kid to be taken for operation to sort out the pain on her thighs on Tuesday. As required, she was put on medication and denied food as a patient preparation standard before surgery.

While she was booked for surgery on Tuesday, this never became the case and it was pushed till Thursday. According to the father, the three year old didn’t eat anything from Tuesday when the doctors had scheduled the operation till Thursday when she was taken to the theatre.

Mathew was hesitant about having the surgery done at Kenyatta but he was convinced that it was the best place to have it done given it being the biggest hospital. He had suggested taking her to a private hospital. In his own view, he wasn’t convinced the minor case warranted an operation.

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On Thursday at 11am, Peninah was finally taken to the theatre and once again, things would go down the drain from this point. Minutes turned to hours of waiting, uncertainty and anxiety was killing the parents on the other end. At 3pm that is five hours after she was checked in for the minor operation, the mother was called from the ward to take her daughter, by then, they had finished, so they thought.

When her mother, Joanne Atieno took her up, she felt something unusual, she was struggling to breath and at this point the doctors must have realized they made a mistake and then took her away from the mother who was then instructed to leave. This would be the last time she held her in her arms alive.

Peninah took her last breath minutes after, she was registered dead at 3.05pm. Mathew was then called to the hospital at 7pm where they broke to him the bad news.

Dissatisfied with everything, the father is convinced the death has been caused by doctors negligence and according to an uncle Chabuga Evans who’s taking the lead in seeking answers, Peninah was given anesthesia overload and that’s what resulted in the hard breathing. They claim she was taken out of the surgery before full recovery and the doctors didn’t factor in precautionary measures to keep the baby alive.

Narrating his story, the disturbed father is pointing all fingers at the hospital. “This was a minor case that shouldn’t have resulted in the death of my daughter, I’m mad, sad, friends and family are falling and I can’t explain to them what exactly happened.” Our interview pauses as he breaks into tears.

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The uncle Chabuga took over making their pointers clear that from Tuesday to Thursday the kid wasn’t given food and was taken to the theatre while too weak. They’re questioning why the doctors didn’t consider the physical stability before taking her for surgery.

Getting answers from the management has become a challenge, the family says. The body is at the hospital’s mortuary and they’re sourcing for independent pathologist to ascertain cause of death. They read dishonesty that the body has already been treated which the claim can possibly wash away crucial clues to find cause of death.

However, the resident pathologists are giving assurances that this wouldn’t be an issue as autopsy will show the exact cause. They’re determined to take the matter to all heights to get justice for the kid. They’ve raised an eyebrow as to why the final report was written by a different doctor from the ones who handled the patient. They’ve been advised to seek answers from the management.

Kenyatta Hospital continues to struggle with systematic failures which this site has been highlighting and are never addressed. General understaffing, underfunding and overcrowding remains the biggest challenges that are yet to be addressed making it prone to such errors which can be avoided.

As this family seeks justice for their daughter, another disaster is waiting to happen, the more things change, the more they remain the same. We’re yet to move on from the incident where a wrong patient had his skull opened and now this and so many unreported cases.

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Employ more doctors and staff, thevfew available are overworked, demoralized and proneness to mistakes increased, allocate more funds and ensure the projects are implemented to improve the facilities at KNH, we can’t have a national referral hospital running on colonial equipments. Decongest KNH by ensuring other public hospitals are working perfectly, this hospital should only be for complex issues as it should be not for treating minor cases like fever.

The hospital must give answers to the family of the deceased and ensure justice by taking actions against any deliberate negligence if any that might have resulted in the death of the three year old girl.


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