Two arrested in Sh40.5 million Kenya Maritime Authority insurance fraud
National
By
David Njaaga
| Dec 01, 2024
The Ethics and Anti-Corruption Commission (EACC) has arrested two top officials from Liaison Group Insurance Brokers Limited over a Sh40,539,760 medical insurance fraud.
Julius Kitheka, the General Manager of Healthcare and Danson Kaba, the Mombasa Branch Manager, were detained following raids in Nairobi and Mombasa.
They are accused of collaborating with Kenya Maritime Authority (KMA) officials Henry Mwasaru and Bevaline Lundu in a bid rigging scheme.
The EACC said Liaison Group prepared the tender documents and forwarded them to KMA for advertisement.
The fraudulent tender was awarded for medical insurance, group life assurance and general insurance coverage for KMA staff and board members.
READ MORE
Why fintechs have a duty to ensure positive social impact
Vivo defends Shell V-Power against poor quality claims
Truckers face mandatory use of planned Sh352b Mombasa-Nairobi Expressway
Suez Canal disruptions cost Kenyan fresh produce exporters
Chinese investor barred from visiting parents over Sh83.5 million tax arrears
Kenya eyes new IMF programme as current one nears end
International report warns against loss of control over AI
Fusion Estates taps ex-Mhasibu Housing CEO to drive its growth
Epra, Kebs say local petroleum meets required standards
No new taxes on employment income, says Treasury CS John Mbadi
Confirming the arrests, EACC spokesperson Eric Ngumbi said the operation "yielded valuable evidentiary material that will support the ongoing investigation."
He added the Commission is focusing on fraudulent insurance procurements in public institutions, which some officials are using as "a conduit for embezzlement of public funds through bid rigging and kickbacks."
The tender, issued for the 2022/2023 and 2023/2024 financial years, includes KMA-ONT-19-2023-2024, KMA-ONT-20-2023-2024, and KMA-ONT-29-2023-2024.