SHA CEO Mercy Mwangangi grilled over Ksh.77M paid to recover debt worth Ksh.13M

The Public Investments Committee has raised concerns over exorbitant legal fees incurred by the defunct NHIF in the 2020/2021 financial year.

The Emmanuel Wangwe-led committee questioned how three law firms were paid Ksh.77 million to recover a Ksh.13 million debt.

Social Health Authority Chief Executive Officer Dr. Mercy Mwangangi, who was put on the spot to explain the expenditure, promised to furnish the committee with a full report in three weeks.

Even as she tried to exonerate her team from the questionable expenditure, Members of Parliament demanded that she take responsibility and provide answers.

“We are not in that institution. We are looking at you. Kenyans know you; they don’t know who left the institution. You are saying you are new because being new is trying to escape questions. So who prepared this?” PIC Vice Chair Caleb Amisi said.

Wangwe added, “Would you confirm whether you responded to all the audit processes? Because I am reliably informed that you didn’t even respond to management letters that were sent to you.”

On her part, Dr Mwangangi said, “We have been working on developing these responses, and we will have to go back and check why those responses were not done by the NHIF team then.”

The committee flagged a Ksh.247 million payment in legal fees during the 2020/2021 financial year, raising questions about three law firms that received Ksh.77 million to recover a debt of Ksh.13 million.

“The documents and the information provided here are information we have collected from the NHIF and now the SHA. But it’s unfortunate it was not given to the Auditor General then,” said SHA CFO Robert Ingasira.

“Further reforms have been made since then. If you look at the issues raised by the Auditor General, the current SHA benefit is itemised unit by unit and gazetted by law with tariffs that are available within public knowledge,” added Dr Mwangangi.

The legislators also called on the SHA CEO to consider seeking amendments to the Social Health Insurance Act in line with what Kenyans are asking for.

“Somebody has had an operation today and in six months is coming back for the other one but is stopped by way of the law. That is why we are there — we can amend it. So consider that Kenyans are feeling that issue of one-off surgery,” Wangwe noted.

“In the law, there is a way of improving these packages. It is through the Health Benefits Advisory Panel, which is receiving commentary, and this fiscal year depends on the basket available as well as the need and the disease burden,” Dr Mwangangi added.

Dr. Mwangangi maintains that SHA is far better than NHIF in all aspects, urging Members of Parliament to support in enlightening their constituents and getting them enlisted.