Probe Reveals How Insurance Company Bosses Colluded With Kenya Maritime Officials In Sh40 Million Medical Tender

The Ethics and Anti-Corruption Commission (EACC) staged a search operation at the offices of Liaison Group Insurance Brokers Limited in Nairobi and Mombasa and arrested two top company officials in a Sh40 million prove.

This is part of the ongoing investigations into increasing cases of private insurance companies colluding with government ggencies to fraudulently secure tenders for staff medical insurance cover at exorbitant costs.

Those detained for grilling include Julius Kitheka, the General Manager of Healthcare and Danson Kaba the Mombasa Branch Manager.

According to EACC, the two are accused of masterminding the fraudulent scheme on behalf of Liaison Insurance Group, working in cahoots with one Henry Mwasaru, the Kenya Maritime Authority (KMA) Head of Human Resource & Administration and Bevaline Lundu Head of Supply Chain Management.

Pursuant to Court Orders issued by Mombasa Chief Magistrates Court, Kitheka was arrested after a search in his Nairobi residence and escorted to EACC Integrity Centre Offices for processing while Kaba, arrested in Mombasa, was processed at EACC Mombasa offices.

Mwasaru was arrested at Naivasha where he attended training and taken to Integrity Centre.

Preliminary investigation reveal that Liaison Group secured the tender through bid rigging and that the tender was prepared and finalized by senior officers from Liaison Group Insurance Brokers Limited and the same forwarded to KMA for advertisement to invite bidders.

Confirming the Tuesday raid and arrests, the Commission, through Spokesperson Eric Ngumbi, on Sunday said that the operation yielded valuable evidentiary material that will support the ongoing investigation.

EACC has intensified focus on procurement of staff medical insurance cover in public institutions, which some officials are now using as a conduit for embezzlement of public funds through bid rigging and kickbacks.

The corruptly awarded Tenders are KMA-ONT-19-2023-2024, KMA-ONT-20-2023-2024 and KMA-ONT-29-2022-2023 for provision of Medical Insurance cover, Group Life Assurance cover and General Insurance cover to KMA staff and Board Members at a cost of Kes40,539,760.00 executed during the financial years 2022/2023 and 2023/2024.

The probe is ongoing and the file will be sent to the Office of the Director of Public Prosecutions for action.