Nairobi chief magistrate Lawrence Mugambi ruled that the prosecution has established a case against Dr Kerich, Mr Fadhili Marwa Chacha a former manager, strategy and corporate planning, and Mr David Chingi a former assistant manager, benefits and quality assurance at the insurer, NHIF.
The court also ruled that Mr Peter Ngunjiri Wambugu and Mr Ndiba Warioko, together with Meridian Medical Centre, have a case to answer.
The former NHIF officials are accused of entering a deal with Meridian for the provision of medical services at a cost of Sh116.9 million under the civil services and disciplined forces scheme, when they were aware that the healthcare provider had no capacity to offer such services.
Dr Kerich, Mr Chacha and Mr Chingi are also accused of abuse of office, failing to comply with procurement laws and conferring a benefit of Sh43 million to Meridian, offences they allegedly committed between December 21, 2011 and February 8, 2012.
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Failing to comply with the law
Meridian was among 173 healthcare providers that responded to an advertisement by NHIF calling for proposal on provision of outpatient services to civil servants. The cover, known as Mzalendo, shortlisted 10 branches belonging to Meridian. The scheme was to start in January 2012.
The court, however acquitted Mr Chacha on one count of failing to comply with the laws relating to procurement, saying his involvement in the process came after the procurement had been done.
“The involvement of the 2nd accused (Mr Chacha) only came later on, that is, post the fact of selection of the 6th accused (Meridian) as a medical service provider and contracting,” Mr Mugambi ruled.