The National Assembly’s Public Investments Committee (PIC), on Social Services, Administration and Agriculture is currently investigating allegations of irregularities in loan issuance and cost inflation totalling billions of shillings at the National Health Insurance Fund (NHIF).
The committee, which is particularly concerned about a 340 percent increase in the cost of constructing a multi-storeyed car park in Nairobi, is now requesting the parastatal to provide a thorough explanation for this significant surge in construction costs.
Committee members on Tuesday toured NHIF’s premises to inspect the car park whose construction cost was inflated from Ksh.900 million to Ksh.3.9 billion, with many labelling the structure non-satisfactory.
The committee further asserted that there was no justification for the expenses incurred, further stating that individuals involved in the planning of the construction ought to be arrested.
“That was a whooping thuggery; there was no value for money. They (planners) should all be in jail and not interacting with Kenyans,” PIC Chair and National Assembly Majority Whip Emmanuel Wangwe said.
According to the Auditor General’s report for the year ending June 30, 2016, Ksh.900 million shillings was budgeted for the entire project in May 2002.
By the time of its completion in 2008, Ksh.3.4 billion had been spent. A further Ksh.626.6 million and Ksh.4.7 million was also incurred on the project.
“The project had been delayed and the prolongation in the contract period is what caused the escalation,” NHIF CEO Elijah Wachira said.
Earlier, the committee visited the disputed land in Karen which NHIF and two other entities lay claim to. The committee has also invited the Directorate of Criminal Investigations (DCI) to shed light on the investigations of the ownership row.
The committee was also shocked to learn that the State parastatal has not fenced the land despite a 2016 court order ordering it do so.
NHIF was further pressed to clarify on Ksh.1.4 billion spent on consultants for feasibility and design works.
“How come NHIF paid Ksh.1.4 billion for works that did not take off? We will be asking NHIF to explain,” Wangwe stated.
The committee has scheduled a session on March 13 to engage with NHIF regarding the findings and to seek clarity on the issues uncovered during the investigation.
