Meridian Medical Centre Nairobi [Photo/Capital centre]

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Meridian Medical Centre, a chain of private clinics, has accused the National Hospital Insurance Fund (NHIF) of failing to pay Sh1.5 billion compensation over the termination of a controversial medical services contract.

The medical facility has faulted the state agency of refusing to pay despite the office of the Attorney General advice that the part of the payment be made.

“The plaintiff suffered loss of profit due to the malicious and negligent breach of contract by NHIF through abrupt and justified termination of contract,” Meridian says its petition.

However, the NHIF has refuted the claims citing that it is not a breach of contract. It has in turn accused meridian medical of failing to submit mandatory returns as provided for in the contract it signed with the NHIF board.

NHIF boss Richard Kerich together with Meridian directors Peter Wambugu and Ndiba Wairioko, was charged with conspiracy to defraud the NHIF of Sh116.9 million.

The health insurance’s bosses were accused of entering into a contract with the medical facility despite the fact it has no capacity to offer medical care.