The National Health Insurance Fund (NHIF) board and its Chief Executive Officer (CEO) have, for the second time, failed to comply with a High Court order to renew a medical insurance contract with a firm belonging to former NACADA chairman John Mututho.
Appearing before Justice Josephine Mong'are of Milimani High Court, Commercial and Tax Division on Monday, April 29, 2024, NHIF board and CEO Elijah Wachira confirmed that they are yet to honour the court directive to award Mututho's firm JOMEC Limited the contract.
"Your honour, I confirm we (NHIF and its CEO) have not settled the matter. I confirm that deliberations are ongoing between ourselves (NHIF and JOMEC Limited). We had undertaken to finalize the settlement by one week but we have not. We seek another seven days to do so," NHIF lawyer Brian Odongo told the judge.
On his side, Mututho's lawyer Kimani Wachira confirmed that the board and its CEO are yet to purge contempt as ordered last week and instead filed a replying affidavit to the contempt of court application against them. As a consequence, Justice Mong'are fixed the court of application for hearing on July 29, 2024.
"I advise the parties herein to continue with the negotiations and if you agree before the hearing date you can do another consent," the judge stated.
NHIF granted 7 days
Last week, on Monday, the judge granted the NHIF board and its CEO seven days to comply with a High Court order issued on February 6, 2024, in favour of Mututho's firm JOMEC Limited.
"I hereby caution parties of the seriousness of the contempt proceedings and direct the NHIF Board and its CEO to strictly comply with the Consent Court Order dated February 6, 2024, without fail. The matter will be mentioned on Monday, April 29, 2024, to confirm full compliance by NHIF," the judge had stated.
The judge had granted the government underwriter more time to obey her court order after Mututho's firm JOMEC Limited filed a contempt of court application accusing the board and its CEO Wachira of disregarding court orders to execute new service delivery agreements for the provision of medical health services by the firm's health facility.
Mututho wants Wachira and the board found guilty and sentenced for contempt of court on grounds that they have refused to facilitate the renewal of the service delivery agreement for the provision of medical health services as gazetted at JOMEC's health facility as earlier ordered by the court.
The documents filed in court show that through a consent of the court dated January 2, 2024, and filed before Justice Mong'are on February 5, 2024, JOMEC and NHIF agreed to settle the matter on condition of settlement of an all-inclusive sum of Ksh188,277,911 in a full and final settlement in one instalment.
Further, the consent orders provided that both NHIF and JOMEC "shall execute new service delivery agreements for the provision of medical health services" as gazetted at JOMEC’s health facility within the legal framework and regulations governing NHIF.
Despite service upon the NHIF Board and its CEO, Mututho contended that they have willfully and blatantly disregarded the court orders and have failed, neglected, and/or refused to comply with the same without any justifiable cause at all.
"That as a result of the respondent and contemnors' refusal to comply with the Court's Consent Orders, the applicant has been unable to offer NHIF services to its patients despite having complied with the necessary regulatory framework and obtained all the requisite approvals, permits, and certificates," Mututho said.
Further, he said that his company stands to suffer immense losses as a result of omissions occasioned by NHIF declining to issue JOMEC with the service delivery contracts where it was agreed that it shall recover the waived sum of Ksh166,086,533.81 from the intended service delivery contracts.
