This archive report was first published on 8 January 2020.
On January 8, 2020, the National Hospital Insurance Fund (NHIF) announced that it had reversed a payment of Sh495 million made to an IT firm for an Integrated Revenue Management system.
The payment was part of an audit query raised by former Auditor-General Edward Ouko in his 2017/2018 report.
According to documents presented to the National Assembly's Public Investments Committee, NHIF indicated that it had complied with the recommendations of the Auditor and reversed the payment of Sh495,205,588.
‘Following the recommendations by the audit, the contract amount of Sh495,205,588 has since been reversed and removed from the plant, property and equipment in the subsequent financial year,' NHIF stated in a document signed by acting chief executive Nicodemus Odongo.
The IT firm, Web Tribe, was engaged by NHIF on June 4, 2018, to implement the revenue management system.
However, audit reports revealed that the system had not been acquired by NHIF as of June 30, 2018, and the total cost was included under additions to computers and related equipment, resulting in an overstatement of the equipment by the said amount.
