Bidders up in arms over cancellation of NHIF tenders
The cancellation of several tenders at the National Hospital Insurance Fund in unclear circumstances has elicited uproar among bidders.
Acting CEO Samson Kuhora is said to have cancelled the tenders hours to submission of the documents, a move bidders said was against procurement procedures.
Bidders have already challenged the position and are in receipt of an advisory from the Public Procurement Regulatory Authority.
The petitioners are in receipt of a legal advisory letter from the Public Procurement Regulatory Authority REF: PPRA/5/50/VOL.IV (19).
The PPRA has directed NHIF to do addendums, an attachment to a contract that modifies the terms and conditions of the original contract. Addendums are used to efficiently update the terms or conditions of many types of contracts.
Bidders were concerned that the tenders were cancelled at the last minute.
NHIF issued the tenders on May 30, 2023, with prospective bidders having until June 14, 2023, to submit their bids. The CEO is said to have cancelled the tenders a day earlier.
“The cancellation was not uploaded on Public Procurement Information Portal as stipulated by law,” a bidder said.
The CEO however 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,” another bidder said.
In an online message, the CEO cited section 63 (1) (e) of the Public Procurement and Asset Disposal Act.
But the bidders questioned the cancellation without a valid justification and vowed to challenge the decision in court.
NHIF said there were errors in the tendering process and vowed to take necessary action to correct the matter.
Kuhora promised disciplinary action against staff who erred in the tendering process.
The health insurance body added that it will seek an advisory from PPRA and conduct an internal review of its procurement procedures.
“NHIF has actively engaged with the Regulatory Authority to advise on the way forward on this matter,” Kuhora said.
“The Fund is conducting an internal review of its procurement procedures and strengthening internal controls to minimize the risk of inadvertent modifications or any potential improprieties. This includes implementing stricter document management protocols, establishing clear approval processes, and strengthening oversight mechanisms throughout the procurement cycle."
Among those cancelled was tender No. NHIF/033/2022-23 for provision of insurance brokerage services and tender No.NHIF/036/2022-23 for 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.
Others were tender No. NHIF/037/2022-23 for provision of emergency road evacuation services.
NHIF also cancelled tenders for the supply, delivery and implementation of endpoint solutions and email security and actuarial services.
NHIF has been on the spot lately over allegations of dubious deals with hospitals.
Health Cabinet Secretary Susan Nakhumicha has since ordered a comprehensive lifestyle audit to be conducted on staff to ensure transparency and accountability within the organisation.
Nakhumicha has already suspended NHIF branch managers in certain areas of the country after the media exposed how unscrupulous hospitals stole millions of shillings through suspect medical camps targeting elderly patients.
The Senate Health Committee is also carrying out an inquiry into claims of embezzlement of funds in NHIF in questionable claims by various health facilities across the country.
Nominated Senator Esther Okenyuri in a statement before the house wants the committee to state the measures in place to recover public funds lost in collusion between employees of NHIF and directors of such facilities and indicate the amount of funds recovered through such measures instituted by NHIF in the last five years. BY THE STAR
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