MCAs reject new medical scheme, say it has no capacity

Members discuss the medical scheme tendering process in the Mombasa County Assembly.

NAIROBI, KENYA: Members of the County Assembly (MCAs) have rejected a medical insurance firm chosen by the county to take care of their medical costs and the assembly staff, saying it has no capacity to provide such services.

The MCAs claimed Masumali Meghji Insurance Brokers, which is asking for Sh33,245,433, was chosen fraudulently.

The members wondered how AAR Insurance Kenya, which previously took care of their medical cover, was placed second in the bidding even though it offers services for Sh29,416,300.

All the three firms offered Sh1 million per family, Sh20,000 for dental care and Sh20,000 for optical needs as the inpatient health cover.

During the controversial tendering, Resolution Insurance came third, offering its services for Sh29,979,673.

A report tabled by Health committee chairman Kibwana Baya had noted that Masumali Meghji Brokers offered to cover maternity and outpatient services at Sh150,000 and Sh200,000 per family, while AAR and Resolution offered Sh50,000 and Sh100,000 respectively.

Mr Baya told the MCAs that procurement procedures were strictly followed and there were no flaws in the process.

FLAWED TENDERING

"Based on our analysis, Masumali Meghji Insurance Brokers stood out on two critical issues. They offered better outpatient and maternity covers," Baya said.

But on Tuesday evening, MCAs rejected the health committee report that cleared Masumali Meghji Insurance, claiming the tendering process was flawed.

The MCAs insisted they had no problem with services under AAR, which was still owed Sh14,974,635 by the county assembly for the 2013/2014 financial year.

Following the stand-off, House Speaker Thadius Rajwayi directed the chairman of all house committees, including the deputy speaker, house welfare chairman and chief whip to probe the matter and provide a report within 48 hours before he makes a final decision.

"I am giving this group 48 hours to come up with a report on the proper position regarding this matter," Mr Rajwayi said.

The report was prepared following a question by Chaani Ward Rep Ibrahim Kondo on August 7 on the health scheme tendering process.

KIzingo/Mji wa Kale Ward Rep Amur Murfad tore into the report, saying the tender agreement was made more than 14 days after the award, which is contrary to the law. He also claimed the new insurer had no ability to offer scheme services.

SEREM CIRCULAR

Mr Murfad claimed 14 days elapsed before the tender agreement was made. The insurer also got two months' payment without offering any services.

"Other bidders have not even been told about their fate. It is against the law not to inform unsuccessful bidders of the bidding outcome. Somebody is playing games with our lives here," Murfad told the House.

Nominated member and Finance committee chairman Mohamed Hatimy and Mtopanga MCA Lucy Chireri told the House that they had paid for health services from their pockets following medical cover disruptions.

Bamburi MCA Riziki Fundi, who is also a member of the Health committee, opposed the report, claiming Masumali Meghji Insurance's offer of Sh200,000 for outpatient and Sh150,000 for maternity was against a circular by the Salaries and Remuneration Commission chairperson Sarah Serem.

He argued that the ceiling for outpatient and maternity health covers was put at Sh100,000 and Sh50,000 per family respectively.

"Where will the insurance company get that kind of money? It is against the circular by Ms Serem. We demand that the award of this tender be overturned," he said.

Fundi pointed out that he differed with his own committee because money was being wasted, adding that AAR had offered services without a hitch.

The fate of the new insurer remains in the hands of a committee appointed by the Speaker.