As controversy flares at City Hall over the Sh1.7 billion
tender reportedly awarded to AAR Insurance, Majority leader Abdi Guyo has defended it.
The health insurer covers county staff.
Last Friday, Minority Chief Whip Peter Imwatok sued Governor Mike Sonko alleging the taxpayer lost the money as the awarding and payment to the firm were irregular.
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But
Guyo has defended the tender saying the procurement process was above board.
He said all the procurement laws, including the Public Finance Management Act, were duly followed and that not a single firm that lost the bidding
has complained about the process.
“Not a single company has filed a complaint with the Public Procurement Oversight Authority about the process,” he said on Tuesday.
Guyo
explained that an insurance payment of Sh1.7 billion was passed but only Sh1.06 billion went to AAR and the rest 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,” he said.
The Majority leader
noted that Imwatok (Makongeni) is a member of the Budget Committee that approved the payment and that he was in the House when the budget was tabled.
Guyo, who is
Matopeni MCA, said his colleague did not challenge the tendering process but the contractual sums which are in tandem with the contract.
“AAR has been doing business with the county government for the last three financial years. He (Imwatok) has never raised any issues on the same," he said.
“I see this as desperate attempt to blackmail the Governor and the county government. I challenge Imwatok to table evidence in the House to prove the process was flawed because he was part and parcel of the team that approved the payments."
In his petition, Imwatok has alleged that the Public Procurement Oversight Authority (PPOA) irregularly authorised the release and payment of Sh1.7 billion from Nairobi County accounts to AAR.
He also claimed that county employees were receiving substandard services from Bliss GVS Healthcare Limited that was sub-contracted by AAR to provide medical services.
Guyo rubbished claims that county workers have been complaining of sub-standard health services by Bliss.
“We have not heard any member of staff complaining of a substandard medical cover. [This is a matter of] paramount importance. We cannot allow it to be trivialised,” he said.
Imwatok is seeking an audit of the financial books of AAR and Bliss for the years 2015/16, 2016/17 and 2017/18.
He also wants an order for all funds paid to AAR for two extensions of its contract with the county government - from July 1 to September 30, 2017 and October 1 to December 31, 2017 - returned to City Hall.