NHIF reverses Sh495m paid for revenue system

The National Hospital Insurance Fund (NHIF) says it has reversed payment of Sh495 million made to an IT firm for the Integrated Revenue Management system.

The money was part of the audit query that former Auditor-General Edward Ouko had raised in his report for 2017/2018.

Through documents currently before the National Assembly’s Public Investments Committee, NHIF indicates that it complied with the recommendations of the Auditor and reversed the payment of Sh495,205,588 that was part of the cost of the system.

“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 says in the document signed by acting chief executive Nicodemus Odongo.

NHIF engaged Web Tribe on June 4, 2018.

Audit reports indicate that although the State insurer had not acquired the system as at June 30, 2018, the total cost was included under additions to computers and related equipment, resulting in an overstatement of the equipment by the said amount.

On direct procurement that had also been queried by Mr Ouko, NHIF said the IT firm had exclusive rights to the system used for revenue collection and management.