The National Hospital Insurance Fund (NHIF) is on the spot for going against the Public Procurement Administrative Review Board (PPARB) orders not to proceed with the tendering process of a Ksh7billion insurance cover for civil servants and the National Youth Service (NYS) staff.
PPARB in its decision declared the termination of Tenders No. NHIF/002/2022-2023, NHIF/032/2022-2023, NHIF/033/2022-2023, NHIF/036/2022-2023 and NHIF/037/2022-2023 were not in accordance with section 63 of the Public Procurement and Asset Disposal Act is accordingly null and void.
The bidders also got a reprieve after PPARB quashed the decision of NHIF of June 13, 2023, that terminated the tenders NHIF/002/2022-2023, NHIF/032/2022-2023, NHIF/033/2022-2023, NHIF/036/2022-2023 and NHIF/037/2022-2023 respectively.
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“The respondent is directed to proceed with the procurement process in strict compliance with the applicable laws taking into consideration the findings of the board made in this decision,” reads the orders by the PPARB.
However, K24 Digital has now established that instead of continuing with the process of procurement in accordance with the PPARB orders, NHIF has gone ahead to do direct procurement of insurance cover for civil servants.
The bidders also claim that the acting head of the Supply Chain Department has refused to vacate office after the High Court stayed the irregular appointment that was done on June 15, 2023, by Chief Executive Officer Samson Kuhora.
NHIF acting Head of Supply Chain
On July 24, 2023, acting Head of Supply Chain Pamela Marendi whose appointment has been quashed wrote to insurance companies asking them to reapply for the tenders having addressed all the gaps.
Sources intimated to K24 Digital that Ms Marendi has not vacated the office as per the Court orders.
Bidders are also in possession of PPRA Advisory dated July 20, REF: PPRA/6/1/1 vol. v on implementation of the review board orders that directed the procuring entity to proceed with tendering but the fund hasn’t complied.
NHIF had cancelled several tenders sparking an outcry among firms that bid for the tenders.
The Health insurer had cancelled tenders for the provision of insurance brokerage services for the provision of co-insurance and facultative insurance services for group life and final expense insurance services for civil servants and employees of the National Youth Service.
Sources claim that the demotions and promotions that were effected by the Kuhora could have been to help cartels achieve direct procurement denying other insurance companies a fair competitive process.
The bidders are inviting parliamentary health committees, the Directorate of Criminal Investigations (DCI), and the Ethics Anti-Corruption Commission (EACC) to investigate the matter and the officials involved in the irregular procurement charged and prosecuted.
The bidders had claimed that the Insurer’s Acting Chief Executive Officer Samson Kuhora cancelled the tenders' hours to submission of the documents, a decision they say is unlawful.
NHIF issued the tenders on May 30, 2023, with prospective bidders having until June 14, 2023, to submit their bids.
But the bidders, claim that Kuhora cancelled the tenders a day earlier, adding that he advertised the cancellation in My Gov six days after the purported cancellation.
“It is only on Tuesday, June 20 in a desperate move that the CEO officially advertised the cancellation in My Gov newspaper six days after the purported cancellation,” claimed a bidder who sought anonymity.
Bidders fear the cartels may have influenced the cancellation of the tenders without due process being followed.
“The cancellation was not uploaded on Public Procurement Information Portal as stipulated by law,” another bidder who sought anonymity claimed.
However, a group challenged the position.
Bidders said they are also concerned that there could be a scheme to interfere with the tendering process and documents to favour cartels, which caused the last-minute cancellation.
Efforts to get a response from Dr Kuhora the acting Chief Executive proved futile after our calls to his known phone number went unanswered and our texts messages were not replied to.
