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National Hospital Insurance Fund (NHIF) is yet again on the spot for the withdrawal of several tenders which has sparked an outcry among firms that bid for various tenders.

This is after the Health insurer cancelled tenders for the provision of insurance brokerage services, for the 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.

The tenders are: Tender No. NHIF/033/2022-23 and tender No. NHIF/036/2022-23.
The bidders claim that the insurer’s acting Chief Executive Officer Samson Kuhora cancelled the tenders’ hours to submission of the documents, a decision they say is unlawful.

NHIF issued the tenders on May 30, 2023, with prospective bidders having until June 14, 2023, to submit their bids.

But the bidders, claim that Kuhora cancelled the tenders a day earlier, adding that he 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,” claimed a bidder who sought anonymity.
Bidders fear the cartels may have influenced the cancellation of the tenders without due process being followed.

“The cancellation was not uploaded on Public Procurement Information Portal as stipulated by law,” another bidder who sought anonymity claimed.

Already, some bidders are reported to have visited NHIF offices to question the decision claiming there was no valid justification. However, a group has challenged the position and are in receipt of an advisory from the Public Procurement Regulatory Authority (PPRA).

People Daily has established that PPRA has directed NHIF to do addendums and an attachment to a contract that modifies the terms and conditions of the original contract.

The petitioners are in receipt of a legal advisory letter from the Public Procurement Regulatory Authority.
In an online message, the CEO cited section 63 (1) (e) of the Public Procurement and Asset Disposal Act.
NHIF said in a statement 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 minimise 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.”

The bidders claimed that the insurance body has already demoted some staff and promoted others in connection to the cancellation of the tenders.

Bidders said they are also concerned that there could be a scheme interfere with the tendering process and documents to favour cartels, which caused the last-minute cancellation.

NHIF also cancelled tenders for the supply, delivery and implementation of endpoint solutions and email security and actuarial services.

They further claimed some staff fear they could be targets of the cartels working with individuals in the management.

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.