By Luke Anami and Ally Jamah

Medical Services Minister Anyang’ Nyong’o has defied President Kibaki and Prime Minister Raila Odinga by recalling suspended National Hospital Insurance Fund chief executive Richard Kerich.

Even before the storm stirred by Kenya Medical Practitioners and Dentist Board that NHIF has gone ahead to accredit 77 unregistered clinics settled it turned out the minister had called Kerich back to office.

This is despite the fact that Parliament returned an inconclusive and unreliable report on the scandal involving the civil servants medical scheme that some members claimed was marred by corruption.

The minister also appeared to jump the gun because he took the action before the probe ordered by President Kibaki was completed.  His action effectively sought to end the work of the caretaker committee Raila appointed.

Initially, when the NHIF board suspended Kerich, Nyong’o as the line minister reversed the move. It was only after Raila intervened, that the Medical Services minister acceded to Kerich’s removal.

The minister recalled Kerich to take over from the acting Chief Executive Adan A Adan whose appointment Raila made to facilitate investigations into the scandal.

The order caused confusion as it came in disregard of an order by President Kibaki that investigations be carried out to establish the truth and tough action be taken against the culprits.

Consequently, drama unfolded at NHIF, as Adan, who is a deputy secretary in the Ministry of Medical Services, remained in office even after Nyong’o confirmed he had recalled him to perform his previous duties so that Kerich could return.

But in another strange twist, it emerged the NHIF Caretaker Committee Chairman Mutuma Mugambi had written to Nyong’o complaining about the decision to reinstate Kerich, before investigations Kibaki ordered were concluded.

Legal advice

On Wednesday, while opening a stakeholder’s workshop on universal health insurance cover in a Nairobi hotel, Nyong’o said his reinstatement of the former NHIF CEO was in line with the NHIF Act.

“The way forward is that we must follow the NHIF Act and of course as the minister I must help guide the way forward. I don’t think there is a problem,” he said, declining to give details

“The caretaker board is under me. We shall discuss the matter and resolve any concerns they may have over the appointment,” he added. But Public Service PS Titus Ndambuki, who is a member of the caretaker committee, said he was not aware of the changes. “We are not aware that acting CEO has been recalled. But we will follow the matter with relevant offices,” said Ndambuki.

On July 10, Nyong’o wrote to the Director of Public Prosecutions Keriako Tobiko, saying Kerich should return to work because Parliament dismissed a report on which his suspension, and that of the entire board, was based on.

“I write to seek legal advice on the matter. Following the submission to Parliament of a report compiled by the Parliamentary Committee on Health and its subsequent dismissal by the Committee of the Whole House, it is clear there is no case against Government officers mentioned adversely in the report, including the CEO Richard Kerich,” Nyong’o wrote to Keriako.

According to a Parliamentary report dated June 28, the Health Committee recommended that the Ethics and Anti-Corruption Commission (EACC) investigate Nyong’o, Kerich, and Public Service Minister Dalmas Otieno’s role in the NHIF saga.

On Wednesday, Nyong’o renewed his assertion that there was no financial scandal, dismissing the discrepancies described as sleazy as a result of “teething problems”.

Pace of investigation

Efforts to reach Tobiko failed, as calls and text messages to his phone went unanswered. But EACC spokesman Nicholas Simani confirmed that investigations President Kibaki ordered were ongoing.

 “The investigations are not moving with the pace that we would have liked because they are complex. Our investigators keep moving back and forth, collecting information and interviewing those concerned. They need more time to analyse what has been gathered,” said Simani.

On May 19, President Kibaki demanded a speedy probe into the NHIF scam and promised tough action on the culprit. He also warned the alleged scandal was likely to frustrate the Government’s drive to provide affordable and universal health care.

“We must never compromise the health of our citizens because of greed and schemes meant to put money in the pockets of people, who have no capacity to deliver health services,” said Kibaki, when he opened a donor-funded hospital in Isiolo.

The NHIF saga involved some clinics getting paid millions of shillings in advance despite their glaring lack of capacity to provide services. Other service providers were found to have been non-existent.

President Kibaki said unscrupulous persons were trying to take advantage of initiatives to provide affordable healthcare to Kenyans, who have entrusted the Government with financial resources to achieve the task.

 “I will therefore be expecting an expeditious completion in the ongoing investigations on the civil service medical scheme. Civil servants like other taxpaying Kenyans deserve a functional, efficient and cost effective health scheme,” the President said then.

He said punitive action should be taken against those found to have participated in any acts that may have compromised health services.

The unfolding drama is akin to what happened early May when Raila overruled Nyong’o and suspended the entire NHIF board, including chairman Richard Muga and Kerich.

Raila then picked Adan after consulting Nyong’o, and acting Head of the Civil Service, Francis Kimemia.

The PM said the board would stay suspended for three months awaiting investigation into the dubious payments at the health insurer.

The Efficiency Monitoring Unit, which is under the PM’s office, was to spearhead investigations into the Fund that has been accused of paying money to non-existent clinics.

But so far no report if any has been made public. The PM is in China on official duties.

Not aware

Adan refused to hand over to Kerich, even as fresh controversy emerged.  Adan failed to attend a press conference to refute fresh allegations that the fund had enlisted 77 new ghost clinics.

George Midiwo, who is the general manager, Benefits and Quality Assurance, addressed journalists.

Dr Midiwo read a press release signed by Adan. He said he was representing his boss, who was held up in another meeting and would join the press conference later on.  He did not, although it was confirmed he was in his office.

Midiwo, who was flanked by general managers working under the caretaker committee, said: “We report to the CEO therefore we are representing Adan and we are not aware of any changes.”