The board and the Chief Executive Officer (CEO) of the National Health Insurance Fund (NHIF) have been sued for the contempt of court charges over alleged failure to honour consent of court orders jointly registered between the health insurer and JOMEC Limited in February this year at the Milimani High Court, Commercial and Tax Division.
In a suit filed under certificate of urgency by Wachira & Mumbi Advocates in favour of JOMEC Limited, NHIF board is listed as the first respondent while the CEO, Elijah Wachira has been listed as the second respondent respectively.
JOMEC want Elijah committed to a civil jail for contempt of court.
On Tuesday this week, High Court Judge Justice Josephine Wayua Wambua Mongare certified the matter as urgent and issued an order directing that the respondents be served and responses be filed within seven days.
“It is hereby ordered that: (i) The notice of motion application dated April 16, 2024 be served upon the respondents and be responded to within seven days; (ii) That the said application be mentioned for directions on April 22, 2024.” The order by Justice Mongare dated April 16, 2024 reads in part.
JOMEC Limited had sued NHIF for failure to settle outstanding payments amounting to Sh188.3million plus accruing damages and damages legal fees totaling to over Sh350million.
Consequently, JOMEC obtained orders to freeze NHIF bank accounts and successfully managed impose transactional hold to four NHIF’s accounts domiciled at the National Bank of Kenya, Co-operative Bank of Kenya Limited, Equity Bank and Kenya Commercial Bank respectively.
However, through a consent of court dated January 2, 2024 and filed on February 5, 2024, JOMEC and NHIF entered into an agreement to settle the matter on condition of settlement of an all-inclusive sum of Sh188,277,911 in 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.
However, through a letter dated April 2024, NHIF CEO Elijah Wachira wrote to JOMEC’s lawyer vide correspondence reference number HF/HQ/LEG/5/138 Vol (7) saying the Fund is unable to execute the new service delivery agreements cited in the consent registered at the High Court citing the transition clauses of NHIF to the Social Health Authority (SHA).
“As part of these guidelines the contracting authority of the NHIF Board has been aligned to its mandate to wind up the Fund under the First Schedule of the Social Health Insurance Act. Therefore, the Fund is unable to enter into new contract for provision of healthcare services, however, your client Messers JOMEC will be engaged during the next contracting cycle.” The letter addressed to Wachira & Mumbi Advocates read in part.
In his latest application filed in court on behalf of JOMEC, Wachira & Mumbi Advocates avers that NHIF has only complied order one (1) of the said consent order and want the NHIF board and CEO committed to civil jail for contempt of court.
“The respondent has only complied with Order 1 (2) of the said Consent Order and has hitherto failed and/or refused to comply with the Consent Order 1(3) of the subject Consent Order that requires both the applicant and the respondent through the facilitation of the contemnor to execute new service delivery agreements for the provision of medical health services as gazette at the applicant’s health facility within the legal framework and regulations.” An affidavit filed in court by Wachira & Mumbi Advocate read in part.
However, when contacted by The Informer Media Group for comment, neither the NHIF board chairman Engineer Michael Kamau nor CEO Elijah Wachira responded to our query by the time of going to broadcast.
Also, a Penal Notice on the consent order registered at the High Court provides that any party affected by the order that disobeys the court orders shall be cited for contempt of court.
“Take notice that if any party and or any person affected by this order, either by yourselves, agents, servants and/or employees or any other person acting by your authority, disobey the court orders herein, you shall be cited for contempt of court and/ or disobedience of a court order and shall be liable to committal to jail for a term not exceeding six months.” The Penal Notice on the Consent Orders reads in part.
