Controversy is in the offing at Nairobi County over a Sh1.7 billion tender awarded to AAR Insurance Company for a health cover for county staff.
Last week, County Assembly Minority Leader Peter Imwatok sued Governor Mike Sonko over the alleged loss of Sh1.7 billion through alleged irregular procurement of the health cover.
Majority leader Abdi Guyo has, however, come out to defend the awarding and payment of the tender saying that it followed the PFM act.
"No company or individual has moved to the Public Procurement Oversight Authority to complain on the issue meaning everything pertaining to the tender was above board," stated Guyo.
Guyo who doubles up as Matopeni Ward MCA, said the decision by Imwatok to move to court was an attempt to blackmail Governor Sonko and the Nairobi County government in general.
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"The MCA is not challenging the process of the award but the payment of the contractual sums awarded which are in tandem with the contract," he added.
In his petition, Imwatok had indicated that the Public Procurement Oversight Authority irregularly authorised the release and payment of billions from Nairobi city accounts to the AAR.
He further indicated that county staff were receiving dismal healthcare services since AAR had sub-contracted Bliss GVS healthcare limited to offer services to county staff.
Guyo, however, explained that the company had been providing services for the last three years yet no red flag had been raised by Imwatok or any other member till now. He also divulged that that the former Kidero regime used to pay the company quarterly which was more costly, saying that Sonko opted to pay the company for the entire financial year.
"This deal is actually saving us Sh300 million compared to the previous arrangements since no brokerage is involved. The issue of insurance cover is a sensitive one and we will not allow it to be trivialized by an individual," he emphasized.
On the issue of poor services being offered to County staff, the majority leader argued that no member of staff had complained over the same hinting at a sinister motive by the minority leader.
"Imwatok was a member of the budget committee that was handling funds for the said tender yet he never criticised the tender until now. It looks very suspicious to say the least because his agenda is to extort," Guyo said.
Imwatok on the other hand is calling on the court to issue an order allowing an audit of the financial books of AAR insurance and Bliss GVS healthcare limited for the financial years 2015/16,2016/17 and 2017/18.
"I'm seeking a declaration that Sonko, former County secretary Simon Morintat and former finance Veska Kengogo are unfit to hold any public office," said Imwatok in the petition.
