Friday, December 6, 2024

HR Manager involved in Sh. 40 million medical insurance fraud arrested

HR Manager involved in Sh. 40 million medical insurance fraud arrested

The Ethics and Anti-Corruption commission has arrested a Human Resource Manager working at the Kenya Maritime Authority. The suspect, identified as Henry Mwasaru, is accused of involvement in a fraudulent tender process for a staff medical cover worth Sh. 40.5 million.

The HR Manager was arrested while on a training session at Naivasha in an operation that also sought to flush out two insurance brokers who were involved in processing the deal.

Upon arrest, Mwasaru was sped to the EACC’s Integrity Centre in Nairobi for further questioning. The complaint against Mwasaru was filed on September 30th, by the EACC’s Lower Coast Regional Office in Mombasa.

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The whistleblower noted irregularities in the tender process. It is alleged that he worked in cahoots with the Head of Supply Chain Management at KMA, Bevaline Lundu to fraudulently awarded the medical insurance scheme to an illegal insurance agency.

“The HRM who serves as the Assistant Director in charge of HRM at KMA is accused of colluding with his counterpart Head of Supply Chain Management at KMA to fraudulently award the medical insurance tender to an insurance agency outside the law,” the report by the commission revealed.

EACC Spokesperson Eric Ngumbi revealed that Mwasaru and his colleague broke tender procurement laws and regulations.

“After the search operation in their respective residential premises and homes, the three were taken to EACC Offices in Nairobi and Mombasa where they were interviewed and recorded statements. They were later released pending finalization of the probe,” EACC’s statement on X read.

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“The operation, which was pursuant to court orders, yielded valuable evidentiary material that will support the ongoing investigations.”

The anti-graft watch dog clarified that some staff at companies are taking advantage of medical insurance to scam companies and employees through bid rigging and kickbacks.

It added that it would intensify focus on tenders for staff medical insurance in public institutions.

“The outcome of the ongoing investigation will inform the next course of action, which may include prosecution and recovery of any public funds fraudulently paid from public coffers,” said the anti-graft watchdog.

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