MPs have accused the Interior ministry of negligence over missing National Health Insurance Fund (NHIF) quarterly reports on the performance of the Sh2.3 billion enhanced group life cover for police and prison officers.
This came after Auditor-General Nancy Gathungu flagged the missing reports on claims from NHIF.
Members of the Public Accounts Committee of the National Assembly were taken aback after it emerged that for the 15 months NHIF provided the cover, only one report was provided in July ahead of the meeting. The cover ran from January 1, 2021 to December 31, 2021, plus a three-month extension to March 31, 2022.
Internal Security Principal Secretary Raymond Omollo, who appeared before the committee chaired by nominated MP John Mbadi to answer questions on the department’s audited accounts for 2021/22, appeared lost when members demanded to know why the quarterly reports were not provided.
Mr Mbadi and Rarieda MP Otiende Amolo told Mr Omollo that the missing quarterly reports were necessary to track the performance and the implementation of the contract.
“There is a reason why the contract provides for the production of quarterly reports to the state department. This is so as to track the performance and ensure proper execution of the contract,” said Mr Mbadi.
“These reports must be provided for the committee and the Auditor-General for our analysis. The failure by the department to demand the reports from NHIF raises questions,” said Mr Amolo.
The report of the auditor stated that due to the missing quarterly reports, the performance of the cover remains doubtful.
“It was therefore not possible to evaluate or analyse performance based on the claims paid, pending claims and any outstanding claim against the premiums paid by the State Department,” the report states.
The contract stipulated that NHIF shall provide a comprehensive report to the National Police Service and the Kenya Prisons Service on claims every three months. The reports were to be submitted by the 15th day of the month following the lapse of the three months.
Dr Omollo asked for more time from the committee to get the reports but the members would hear none of it.
“To now say that you are demanding reports from NHIF is total negligence. A total of five reports were required during the period of the cover and only one was produced because you knew you had a date with this committee,” said Mr Adow.
“There should be sanctions against those involved. Someone should take responsibility,” he said.
The audit also flagged unpaid claims under the Work Injury Benefits Act (WIBA) as well as claims for critical illness. It notes that under WIBA, a review of payment details and claims made revealed that NHIF had not paid 17 employees a total of Sh4.9 million contrary to the provisions of the contract. Further, 88 members had not been paid claims on WIBA deaths that occurred in 2021.
“No explanation was provided for the anomaly,” the report notes.
