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How the controversial Sh800 million insurance tender was awarded

Supreme Court building.(Edward Kiplimo, Standard)

More than 10 senior Judiciary officers have recorded statements with the anti-graft commission over Sh808 million controversial insurance cover.

Staffers drawn from departments such as procurement, human resource (HR), supplies and even deputy registrars who represented various courts in the committee that awarded the contract have already been grilled.

Ethics and Anti-Corruption Commission (EACC) CEO Halake Waqo told Saturday Standard the file containing their findings will be forwarded to Director of Public Prosecution (DPP) Noordin Haji soon.

“Investigations by EACC on allegations of insurancecontracts started much earlier and are at an advanced stage. Senior officers of the judiciary have recorded statements,” he said.

Demand note

Haji ordered EACC to probe issues raised by the Judiciary’s Internal Audit (JIA) on the January 19, 2017 insurance medical demand note of Sh122,179,989, earlier this month.

In a letter dated July 26, 2017, EACC had requested to interview more than 20 officers drawn from departments such as HR, finance, supplies and some deputy registrars.

The officers included Helen Okwani (deputy registrar Court of Appeal), Judith Omange (deputy registrar High Court), Philip Kakai (deputy finance director), Angela Manyalla (HR director), Elijah Owino (principal accountant), David Rapando (finance director), Steven Ikileng (ICT), Gitau Kariuki (tender committee secretary), among others.

EACC will also probe the contract for the provision of security services to the Judiciary dated August 23, 2017. Registrar of the Judiciary Anne Amadi, who commissioned the internal audit and invited the investigating agencies, said action should be taken if culpability is found.

The audit report shows that the Judiciary entered into a contract with Jubilee Insurance Company on September 10, 2015. The Sh648,297,521 contract was for the provision of group medical insurance for 12 months.

The contract that took effect on September 1, 2015 had a condition pegged on it that it be renewed for a further 12 months on mutual consent of both parties, subject to satisfactory performance.

The Judiciary Tender Committee (JTC) is said to have approved the renewal of the contract at a cost of Sh808,056,889 for a period of 12 months. However, the internal audit report queries how the 24.64 per cent variation of the contract cancelled on October 3, 2016 was arrived at by the committee.

In documents seen by Saturday Standard, the judiciary’smedical cover for more than 4,000 staffers had expired and a request for its renewal was tabled before the tender committee.

Short-term cover

The committee decided to renew the deal for two months under the same terms on August 20, 2016 to allow the tendering process.

In a letter dated August 20, 2016 to the company, the Judiciary asked the insurer to give a formal unconditional written acceptance to the offer of two months extension that was to take effect from September 1, 2016 to October 31, 2016.

However, the insurer is said to have rejected the two months extension on existing terms and provided options for renewal that included a short term cover proposal.

Three days later, the committee rejected Jubilee’s two months proposal due to change in benefit and structure for the staff, a move that saw the HR department table before the committee submissions on benefits for renewal of the contract for one year.


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