In Summary
  • Liaison Healthcare's warning followed the PSC's termination of its contract and advertisement for potential service providers to submit sealed tender documents.
  • The PSC's move came two weeks after MPs passed a resolution to reject the current health insurance provider on grounds that it is ineffective.
  • They openly complained of poor service delivery by the insurer, claiming they had been forced to pay bills as the company did not take charge.

The provider of the medical insurance cover for parliamentarians and their families has warned of dire legal consequences should the Parliamentary Service Commission (PSC) list another provider before its contract ends in 2020.

Liaison Healthcare Limited was contracted on February 26, 2018 for two years.

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The company's warning followed the PSC's termination of its contract and advertisement for potential providers to submit sealed tender documents for the insurance scheme before December 11.

On December 5, Liaison told the commission to respect orders issued by Justice Grace Nzioka, who stayed the termination notice of November 22.

“Take notice that any action that undermines or which seeks to interfere with our client’s contract, including the tender opening, shall be in contempt of the court," states a letter by TRIPLEOKLAW Advocates Managing Partner James Ochieng’, who responded on behalf of Liaison.

"We hope you shall fully comply with the court order. Any contravention of the order shall be at your own peril and shall be brought to the attention of the court forthwith thereby exposing you to severe consequences," adds the letter addressed to PSC Secretary Jeremiah Nyegenye, who is also the Senate Clerk. 

The tender opening ceremony was scheduled for December 11, meaning any attempt to proceed with the exercise shall amount to contempt.

MEDIATOR

The court had directed that the dispute between the PSC and the insurance provider be handled by mediation.

The letter notes, however, that the commission has not cooperated in terms of responding to requests for concurrence in the appointment of an arbitrator.

Consequently, Mr Ochieng’ noted that the insurance provider will write to the Chartered Institute of Arbitrators to appoint a single arbitrator to determine the dispute in compliance with the court order.

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