MCA: Sh1.7bn Nairobi tender for Health was above board

Nairobi County Assembly Majority Leader Abdi Guyo. He has said the award of tender to AAR Insurance Kenya by City Hall was above board. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • Nairobi county Assembly Minority Whip Peter Imwatok filed a petition at the Anti-Corruption Court.
  • Mr Imwatok has listed Governor Mike Sonko, former County Secretary Simon Leboo Morintat and former Finance Executive Veska Kagongo as respondents.

A storm is brewing in Nairobi County over award of a tender and payments made to an insurance firm.

On Monday, Nairobi County Assembly Minority Whip Peter Imwatok filed a petition at the Anti-Corruption Court alleging that City Hall authorised an illegal payment of Sh1.7 billion to AAR Insurance Kenya for providing medical cover to county staff.

Mr Imwatok has listed Governor Mike Sonko, former County Secretary Simon Leboo Morintat and former Finance Executive Veska Kagongo as respondents.

In a quick rejoinder, Assembly Majority Leader Abdi Guyo defended the award of the tender, saying that the procurement process was above board. He said that there have been no complaints from companies that submitted their bids.

ILLEGAL PAYMENTS

“There was nothing irregular or illegal in the process. He (Mr Imwatok) is a member of the Budget Committee which captures and regularises the same. He never raised any issue on the floor of the house concerning the award,” said Mr Guyo on Tuesday.

He said that no company involved in the tendering process had called the Public Procurement Oversight Authority (PPOA) to complain that the award of the tender was flawed.

Mr Guyo has challenged the Makongeni MCA to produce evidence showing that the process was flawed and that payments made to AAR Insurance Kenya were exaggerated.

BUSINESS

“AAR has been doing business with the county government for the last three financial years. The said MCA (Mr Imwatok) has never raised any issues on the same. Let him bring watertight proof to the Assembly,” said Mr Guyo.

In his petition, Mr Imwatok had alleged that PPOA irregularly authorised the release and payment of Sh1.7 billion from Nairobi County accounts to AAR.

Mr Guyo said that AAR was paid only Sh1.06 billion for a full financial year and not Sh1.7 billion as alleged by Mr Imwatok.

He added that the county followed PFM Act section 135(1-5) that says that a county government can withdraw money that has not been appropriated for and regularise the same within 60 days.

MEDICAL COVER

He explained that an insurance payment of Sh1.7 billion was passed but only Sh1.06 billion went to AAR while the rest of the money was paid to other insurance companies.

“The amount (Sh1.06 billion) was for a full financial year, the former administration paid Sh350 million quarterly; we saved Sh300 million,” said Mr Guyo.   

The Matopeni MCA also denied claims that county workers had been complaining of sub-standard health services offered by Bliss GVS Healthcare Limited, a health service provider subcontracted by AAR Kenya.

“We have not heard any member of staff complaining of substandard medical cover. Matters of medical cover of staff is of paramount importance and we cannot allow it to be trivialised,” he said.

AUDIT

In the petition, the Orange Democratic Movement ward representative wants the court to issue an order for an audit of financial books of AAR Kenya and Bliss GVS Healthcare Limited for the years 2015/2016, 2016/2017 and 2017/2018.

He is also seeking an order for all funds paid to AAR Kenya for two extensions to its contract with the county government between July 1, 2017 and September 30, 2017, and October 1, 2017 to December 31, 2017, returned to City Hall.