Insurance firms are embroiled in a protracted tender row involving millions of shillings in medical, personal accident, and life assurance cover for the IEBC commissioners and staff.
The Public Procurement Administrative Review Board recently ordered the electoral commission to notify the bidders afresh, citing irregularities in the communication to the bidders.
PPARB made the call after AAR Insurance requested for a review following the IEBC award of the tender to Zamara Risk and Insurance Brokers.
The review team set aside the letter of notification of award of the tender to the firm for the provision of medical insurance, group life assurance, and group personal accident covers.
“The accounting officer of the procuring entity’s letter of notification of award dated May 19, 2021, addressed to Zamara Risk & Insurance Brokers be and is hereby cancelled and set aside,” the board ruled.
It further annulled the letter of notification for unsuccessful bids by the AAR Insurance and the other 39 firms that applied for the tender.
“The procuring entity is hereby directed to issue new notification letters to all the bidders of the outcome of the evaluation in accordance with the law,” the ruling reads in part.
PPARB ruled that the commission did not give the reason why it was the successful bidder nor the amount for which Zamara bid, contrary to the law.
“AAR Insurance letter of notification does not satisfy the threshold of Public Procurement and Asset Disposal Act read together with the Public Procurement and Asset Disposal Regulations 2020.”
The law provides for a notification letter to be issued to an unsuccessful bidder at the same time as the successful bidder is notified.
The same has to be done in writing within the tender validity period, outlining the specific reasons why an unsuccessful bidder was unsuccessful.
It should also disclose the identity of the successful bidder, the reason why such a bidder was successful, and the amount at which the award was made to the successful bidder.
AAR Insurance was knocked out for failing to submit the price schedule in the format prescribed by the Independent Electoral and Boundaries Commission.
The insurer argued that the elements flagged were a minor deviation, which the board said it would not overturn as ‘mandatory requirements cannot be classified as minor deviations.’
PPRAB further revealed that the winning bidder was notified during the 'standstill' period of 14 days contrary to the law thus rendering the contact between Zamara and IEBC null and void.
“The contract dated June 3, 2021, offends the provision of section 135(3) of the Public Procurement and Asset Disposal Act, goes against public policy and is therefore null and void,” the ruling reads in part.
IEBC awarded Zamara the tender for medical insurance at Sh456 million as well as that of group life assurance at Sh11.4 million.
Four M Insurance Brokers was awarded the tender for group personal accident cover at a contract sum of Sh7.5 million having emerged as the bidder with the lowest tender price.
Resolution Insurance and GA Insurance; UAP Life Assurance; and Kenbright Insurance Brokers were kicked out at the evaluation stage for failing to indicate their total tender sums in the price schedule.