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The Central Organisation of Trade Unions Cotu (K) has said it will move to court to challenge the directive by Attorney General Githu Muigai that two clinics - Clinix and Meridian, be paid over Sh218 million in compensation by the National Hospital Insurance Fund (NHIF).

The compensation is as a result of the termination a contract between NHIF and the clinics to provide medical services to civil servants.

“No doubt the alleged contract between NHIF and the two clinics that were outrightly non-existent in their respective locations cited in the contract remains one of the worst corruption case unearthed in the history of Kenya where well connected individuals proceeded to lay claims to millions of workers’ money at the NHIF when none of these clinics existed in those areas,” read part of a statement signed by Secretary General Francis Atwoli.

Atwoli said the move would encourage corruption and it confirms the widely captured perception among majority of Kenyans on the Jubilee government.

He claimed that the sacking of immediate former Chief Executive of NHIF Simeon Ole Kirgotty was meant to re-open the conduit and the long pipeline of siphoning worker’s funds at the NHIF, funds that are meant to improve our health facilities and provide extended health care services to the Kenyan workers.

He urged the National Assembly committee on Health to refrain from permitting the AG’s directive, saying the whole compensation process was a gateway to corruption.

“Equally, the National Assemblies Committee on Health should not be misadvised into making any such recommendation to pay the two clinics in compensation because the whole process of the scheme was outright corruption on the onset,” he said.

Atwoli appealed to President Uhuru Kenyatta to ask the AG to rescind his decision and forthwith stop payments of huge amounts of money to firms he said were non-existent.