The High Court has suspended a decision by the Procurement Administrative Review Board (PPARB) directing NHIF to award a multi-million shilling civil servants life assurance cover to UAP.
This is after CIC Life Assurance moved to court seeking to reverse the decision of the procurement agency.
PPARB had on February 2 cancelled the cover awarded to Britam Life Assurance and Pioneer Assurance and instead directed the same to be awarded to UAP Life Assurance citing irregularities in the awarding of the tender by the National Hospital Insurance Fund (NHIF).
“It is hereby ordered that stay of implementation of the Review Board’s decision made on February 2 2018 as prayed in the chamber summons until further orders of this court,” Justice Roselyn Aburili ordered on Monday.
CIC Life Assurance accuses PPARB of overstepping its mandate by awarding the tender to UAP, even after finding that the process was marred by irregularities.
The Sh836 million contract to provide group life and last expense cover for the civil servants, police and prison staff for the financial year 2017/2018 for civil servants, police and prison officers was awarded to Britam
and Pioneer Assurance in December.
However, CIC Life Assurance Limited, which lost out, appealed to PPARB claiming that the process of awarding the tender was not done according to the procurement and insurance regulatory rules, leading to the recent decision by the quasi-judicial board.