In line with the DCI directive issued ,21 suspects were on Friday seized over allegations that Ksh.1billion was lost through the Jambo Pay service at the National Hospital Insurance Fund (NHIF).
“I have accordingly given directions for the arrest and arraignment of the said officers in court for the stated offences,” the DPP said.
We should boycott paying for NHIF until things are streamlined.
How can a mere “receptionist” at NHIF buy 8 houses at 20 million shillings each, have a wedding worth 25 million shillings and drive a car worth 80 million shillings?
Why are we “legally” funding the corrupt? Why?
— juma G. ?? (@jumaf3) December 8, 2018
Board members Mudzo Nzili (former chairman of the Kenya National Union of Teachers) and Yusuf Ibrahim were listed as the first two suspects in the alleged Ksh.1,103,060,853.89 that was lost at NHIF.
According to the the DPP, the scandal is related to irregular awarding and extension of contract for provision of integrated revenue collection services to Webtribe Limited trading as Jambo Pay.
Alongside the 21 , the charges they will answer to include engaging in a project without prior planning, wilful failure to comply with the law relating to procurement and abuse of office.
They are also accused of wilful failure to comply with the law relating to management of public funds, false accounting by a public officer, deceiving a principal and fraudulent acquisition of public property.
Internal documents show what appears to have been a scheme to siphon off more than Sh1 billion from the health insurer, as the system that was advertised for was not delivered despite seven bidders being led on to the end of a dud procurement process by the NHIF management.
The management, led by then Chief Executive Officer Simeon Kirgotty, wanted to bring on Web Tribe Limited, which trades as JamboPay, to offer payment services to NHIF without going through a competitive process.
So after Web Tribe Limited was eventually picked to instal an internally managed system, which would have cost between Sh400 million and Sh600 million, the contract it signed was for offering a payment solution to NHIF at a fee of between four and 4.5 percent of collections.
Between then and August this year, when NHIF eventually bought its own stand-alone system to which JamboPay would offer only technical support as expected of any vendor, up to Sh1 billion had been lost.