The National Assembly's Health Committee has summoned Health CS Debra Mlongo to explain the rationale the ministry used to single-source the Sh104 billion system for SHIF.
The MPs have concerns that the procurement of the ICT system for the Social Health Insurance Fund, which is being implemented October 1 was not above board.
Mlongo will appear before the committee on Monday, September 30, 2024 amid concerns of whether taxpayers will get value for money.
Lawmakers raised concerns over potential corruption, single-sourcing, and lack of tender documents and public participation.
“The process appears flawed. From what we’ve seen, this looks like fraud in the making. That’s why we need full transparency before we make any decisions," Health Committee chairman Robert Pukose said.
The MPs also want to know why the ministry abandoned the existing NHIF system in favour of the new one.
For the lawmakers, the NHIF system has been effectively serving members of the public to warrant a replacement.
The committee also heard that the new system is yet to show its worth after failing the test in Marsabit and Tharaka Nithi counties.
“They've tested the new system in Marsabit and Tharaka Nithi counties, and it failed,” Pukose said. ““It is unclear why the Ministry is so insistent on replacing a system that has been working.”
“Instead, they should be focusing on enhancing the current NHIF IT system to include all registered members,” the Endebess MP said.
The committee suggested a gradual implementation of any new systems rather than an abrupt overhaul of the existing framework.
Kitutu Chache South MP Anthony Kibagendi said the committee should determine whether the Attorney General had cleared the execution of the contract.
He said a review of the contract documents revealed the Attorney General’s office was not involved.
“The Health Cabinet Secretary did not inform the Cabinet or the National Treasury about this project, as required by the Public Procurement and Asset Disposal Act," Kibagendi said.
The MP wants the Ministry of Health called for ignoring procurement laws and single sourcing companies with no prior experience in implementing social health authority systems.
He said some of the companies in the arrangement were recently registered in Kenya.
“While Safaricom is the lead bidder, the majority of the work is being carried out by Apiero Limited, a partner in the tripartite consortium,” he said.
“The ministry’s decision to award the tender based on Apiero’s experience is questionable, as the company has no direct association with similar systems.”
Kibagendi raised concerns about lack of clarity regarding who owns the procured system and how the consortium plans to recover its investment.
“One reason given for choosing Safaricom was for credit and financing purposes. However, no supporting documentation has been provided. Why didn’t the ministry negotiate with Safaricom to lower the quoted Sh104 billion, an amount that even the most advanced military systems don’t cost?” Kibagendi asked.
The Integrated Healthcare Information Technology System is billed as a key component of the Universal Health Coverage programme.
It was sourced under a Specially Permitted Procurement Procedure, a method MPs have cast doubt on.
MPs say the process was marred with opaqueness and have requested the Attorney General to reject the contract.
The contract of Sh104.8 billion (including taxes) is set to be implemented over 12 years.
The lawmakers are also questioning the role of companies leading the consortium, citing them for inexperience in handling the tender.
Regulation 107 of the Public Procurement and Asset Disposal Act says the National Treasury may permit such procedures – like SPP, if they serve national security or public interest.
Seme MP James Nyikal said there is no need for a new IT system, given that NHIF system Is still operational.
“We need to understand why this new system is necessary. Who will fund it? Will the funds collected through Social Health Insurance be diverted for this purpose?” Nyikal asked.
Kisumu Central MP Joshua Oron said, “Can we halt this process before it moves forward on Monday? This deal reeks of corruption. As a committee, we must act to prevent this from proceeding.”
“We support the launch of the Social Health Authority, but it should continue using the existing system until proper procedures are followed.”
