The National Health Insurance Fund (NHIF), on Tuesday, June 20, cancelled six tenders after media outlets exposed flaws in a Ksh6.9 billion tender for civil servants' insurance cover.
In a notice published in local newspapers, NHIF detailed that the tenders would be revised and re-issued in due course as Cabinet Secretary Susan Nakhumicha continues to whip her staff into line.
Some of the cancelled tenders included insurance for civil servants and National Youth Service (NYS) staff, insurance brokerage services, actuarial science services and provision of road evacuation services for NHIF members.
The cancellation was occasioned by media outlets questioning the national insurer's intention to spend more on covers for civil servants rather than renewing the existing services at a cheaper cost.
NHIF was also accused of advertising the tenders against the advice of the Ministry of Public Service, which warned that the new covers would cost the government more funds.
“The Insurance Regulatory Authority (IRA) wrote to us on April 26 and advised that the cover be extended for one year to avoid the government being disadvantaged with higher premiums,” Principal Secretary Amos Gathecha advised then.
After the exposé, NHIF acting Chief Executive Officer, Samson Kuhora, confirmed that he had launched internal investigations into the matter, with accused staff members facing disciplinary action.
"First, NHIF has conducted an independent review of the tender document modifications to appreciate the changes made; the system, person and process weaknesses that led to the error; and evaluate their impact on the procurement process.
"It has been established that clause 4 on technical evaluation was modified to read 'General Insurance'. Though that is the correct position, the procedure for alteration was not followed. This has informed the disciplinary action regarding the staff," read the statement in part.
The national insurer also indicated that it initiated reforms in the department to prevent the mistakes from recurring.
"These measures includes implementing stricter document management protocols, establishing clear approval processes, strengthening oversight mechanisms throughout the procurement cycle, and implementation of the e-Procurement portal as part of its digitisation framework," the CEO stated.
NHIF was subjected to public scrutiny after an exposé by NTV poked holes into questionable payments made to four hospitals in the country.
“We are going to commence an elaborate lifestyle audit on all staff of NHIF this month. This is to ensure that each member of staff can explain their wealth portfolio inconsistent with their earnings,” Health CS Susan Nakhumicha announced.
