NIC and NHIF on the spot for embezzlement and fake payment
What you need to know:
- Controller and Auditor General (CAG) Prof Mussa Assad has revealed embezzlement of funds in the National Insurance Corporation (NIC) and fake payments which amounted to Sh2.61 billion made by the National Health Insurance Fund (NHIF).
Dodoma. While the National Insurance Corporation (NIC) has been found to have signed a contract to procure a Genisys system that is not well performing, the National Health Insurance Fund (NHIF) made fake payments to a tune of Sh2.61 billion to various contractors.
The revelation was made by special audit report by Controller and Auditor General (CAG) Prof Mussa Assad for the fiscal year ending in June, 2018.
Reading part of the findings during a press conference in Dodoma on Wednesday, April 10, 2019, Prof Assad said NIC entered the contract to incorporate three key functions of the organization namely; life insurance, non-life insurance and accountancy.
“The organization received the system by paying $3.59 million. My audit has revealed that the system is not performing well, forcing the organization to opt for another system called UNISYS,” said Prof Assad.
He added: Due to those challenges, the value for money used for procuring the system has not been realized and purchase intention is yet to be reached.”
Regarding NHIF, he said the audit in financial books, bank statements and NHIF payment documents revealed presence of Sh3 billion payments.
The CAG said that out of all payments made, Sh2.61 billion was fake, Sh350.87 million was remitted to unidentified beneficiaries and Sh42.6 million wasn’t confirmed to have been received by respective recipients.”
He said the payments were supposed to be made to health service providers through closed cheques, but they were paid through cash, contrary to NHIF financial regulations.
