NHIF acquired Jambopay system illegally

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A selecton of the NHIF saga associates when they appeared in court on December 10, 2018. They were charged with the loss of over Sh500 million from NHIF

An Anti-Corruption Court Chief Magistrate, Douglas Ogoti, issued an order on 11th December barring two NHIF bosses; Danson Muchemi Njunji and Robert Muriithi Muna from accessing their offices until police find and secure evidence.

The two are directors of Web Tribe Limited, a company that has been linked to the fraud at the National Hospital Insurance Fund (NHIF).This comes amidst a realization that billions of tax payers’ money could have been fiddled.

NHIF through its systems administrator, Gilbert Gathuo Kamau requested for the acquisition of a software to align all the insurer’s revenue streams in January 2014. It would later set off a chain of events and four years later, the insurer (NHIF) splashed Ksh 1.88 billion in streamlining its revenue streams, which documents before its board indicate is nearly five times the cost of purchasing such a software.

All this in a witty articulated play where NHIF hired a revenue collector though a tender advertisement stating its intention to buy a Software as a Service (SaaS).

While urging the court to issue orders for the preservation the offices, computers and all documents, a directive from the DPP who saw the need to preserve evidence, the State prosecutor noted that Web Tribe was hired to collect revenue through the Integrated Revenue Collection System (IRCS) on behalf of the NHIF.

It awarded a contract for the provision of integrated revenue collection services to the winning bidder — Webtribe Ltd which trades as JamboPay — which bagged a deal that raked in commissions of Sh1.39 billion over four years before selling the same system to NHIF for Ksh 495.2 million in June of this year.

“IT procurement is all about value creation; how much value did the system create for NHIF? There seem to be other parties at play who are not keen on accurate information,” says a staunch critic to the developments of the NHIF saga and who sought anonymity.

The critic added: “I happen to have evaluated both Jambopay and the biometrics offerings at the center of this scandal. Unless there was something untoward in the actual procurement process, the whole thrust of the investigations and reportage is indicative of lack of understanding.”

The DPP, Nordin Haji holds that the procurement laws were violated in single-sourcing for the JamboPay’s system, never mind that it costs about Ksh 500 million! He has since initiated the prosecution of Mr. Mwangi, Mr. Mudzo Nzilii, Mr. Yusuf Ibrahim and Mr. Elly Opot all who were in the audit committee, for allegedly extending the JamboPay deal without disclosing material facts that would have exposed it as a bad deal. The four have been charged with fraudulent acquisition of public property.

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