Civil Service Fraud

Update on the bid rigging and corruption in KNH procurement of insurance services

Jubilee Insurance Chairman Nizar Juma (Center), Group CEO Julius Kipng’etich (Left) and GM Retail Business Nicholas Mruttu.

Kenyatta National Hospital procurement department rigged an insurance tender in favor of Jubilee Insurance Company.

One bidder, Infinity Agency has refused to let injustice reign and has been updating on the progress of the complaint which is now before the Public Procurement Regulatory Authority (PPRA).

According to the whistleblower, PPRA has been compromised.

Good morning, this is an update mail on the status of the above matter. We wish to reliably inform you that investigations are still ongoing. PPRA took up the matter and are still on it. This is despite tireless efforts by the concerned parties to frustrate the investigations by trying to influence and lobby through the Government regulatory and oversight bodies. We now have in our possession all the details of all the people who were involved and all the concerned parties in the procuring entity and the ones they have tried to engage in some government corners. We will hold this for now so as to allow PPRA to complete their job peacefully. We however know that the plan is to influence PPRA in their judgement to introduce certain technicalities in the case so that the judgement can come out in their favour. All these we have the details with us. We wish to remind everyone that the case should be treated with the seriousness it deserves. Let everyone Kenyan carry their own cross. We will be back with more updates in 5 day’s time”.

READ

  1. How Jubilee Insurance rigged to win a tender at Kenyatta National Hospital
  2. KNH Insurance Scandal: Whistleblower now seeks EACC’s help after procurement oversight body compromised

How it started

In the initial procurement, KNH Procurement inserted a clause that favoured Jubilee Insurance.

The discriminatory criteria read, “the underwriter must have a gross profit of 100million each year for the last 3 years (2020, 2019 & 2018) as per IRA reports”.

The KNH was later put to task to reveal the legal basis for the criteria, but the bidders waited for 3 weeks to no avail.

KNH procurement is said to have ignored all protocols and rules and never issued any addendum to the Terms of Reference.

“They ignored all our concerns and never issued any addendum, but went ahead and awarded the tender. All the queries went unanswered. The general definition of Gross Premium is “The revenue of a company after it accounts for what had to be paid out to return that revenue, meaning it is the amount of money actually earned. How to calculate gross profit: Gross Profit = Total Revenue – Total Cost. IRA reports only provide for Profit before tax and profit after tax. How this issue was treated in the tender evaluation remains a mystery”, said the whistleblower.

 

 


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