This archive report was first published on 16 August 2019.
On August 16, 2019, the Public Accounts Committee uncovered a massive Sh150 billion insurance scam at the National Treasury.
The committee discovered that the Treasury had allocated over Sh150 billion as insurance cover for all government and public servants, but no claims had been paid out to those entitled to benefits.
According to the National Treasury's operating policy framework of 2009, the formula for allocating funds is 2.25 per cent of the annual wage roll of all public servants, which amounts to Sh694.981 billion.
The insurance cover was rolled out through the May 2006 Human Resources Policies and Procedures manual for public service policy, designed to cover permanent bodily injury or death arising from an accident.
However, despite the existence of the scheme, no public servant has received compensation through the Group Personal Accident (GPA) and Work Injury Benefits Act (WIBA) policies.
Public Accounts Committee Chair Opiyo Wandayi stated that his committee would probe into the allegations and unravel those behind the scandal.
Treasury Chief Administrative Secretary Nelson Gaichuhie admitted the existence of the GPA and WIBA annual budgetary allocations, but denied responding to why the allocation has not been benefiting victims.
