The Independent Electoral and Boundaries Commission (IEBC) has plans to hand medical insurance cover tender to Jubilee Insurance through uncouth means, Kahawa Tungu can reveal.
According to a letter written to anti-graft agencies in our possession, the deal was hammered in boardrooms and high-end hotels with IEBC officials pocketing millions from the deal.
According to the letter, a team from Jubilee Insurance approached IEBC in March, seeking renewal of the tender despite several complaints raised against the insurer. At first, the deal was being pushed by IEBC’s HR, Administration and Procurement departments but was declined by the commissioners.
The HR and administration director Mr Mohamed Hassan, procurement director Mr Harley K Mutisya met Jubilee team led by general manager Dr Patrick Gatonga and corporate sales manager identified as George, in a bid to retain the account at Jubilee. In the company of the Jubilee team was Juliana Njue from the procurement department and and Waweru, who were to work with Njuguna from Jubilee to hack a way forward.
The three were tasked to hack a way forward that would see Jubilee retain the account, amidst heightened competition from different companies that were bidding for the tender.
George, who was to be the mastermind prepared documents aimed at locking out other bidders.
On May 8, the pre-bidding conference was held at Stanley Sarova where some changes were proposed at the document prepared by George. Several issues were deliberated and were to be attached to the addendum.
Jubilee uploaded the document on May 10, with new conditions that locked out all the other underwriters, with the aim of remaining alone in the deal.
After several complains from other insurers and in-fightins within IEBC, a new addendum was introduced on May 17, opening a window for other bidders.
Agitated Jubilee Insurance wrote to IEBC challenging the new move by implicating the commissioners led by chairman Wafula Chebukati.
Several firms bid for the tender, with Heitage Insurance floating a bid of Ksh245 million, Britam Ksh244 million, CIC Ksh228 million, Jubilee Ksh218 million, AAR Ksh210 million, UAP Ksh210 million and Madison at Ksh199 million.
Feeling a sense of possible defeat, Jubilee cartels met the IEBC tem on May 22 at Jacaranda Hotel where it was agreed that Jubilee would deal with IEBC directly, but not through an agent. This was meant to open a door for IEBC officials to receive kickbacks, which would have otherwise been paid to the agent.
The agent was to receive Ksh20 million for sealing the deal. However, the amount would go to the ‘team’ from IEBC, in which 50 percent would be paid in cash during evaluation period.
In the meeting it was also agreed that Jubilee would meet the entire committee before evaluation. This was to strategise how the other underwriters would be eliminated, most probably by scoring them poorly during evaluation.
On May 24, Juliana and Waweru led the evaluation committee to an undisclosed venue in Lavington to meet Jubilee officials led by George.
On May 25, the committee axed UAP and ARR in a meeting held at KICD Ngara, for unkown reasons. All other underwriters scored at least 90 per cent on technical aspects.
On May 28, the first batch of kickbacks from Jubilee was dispatched in cash through their messengers to reach every member of the committee. A total of Ksh5 million was initially dispatched.
Five of the evaluation committee members received Ksh500,000 while the HR and adminstration director Mohammed Hassan received Ksh1 million. The director of procurement Harley Mutisya received Ksh1 million while Waweru received Ksh500,000.
Immediately the amount was received by the individuals, the results of evaluation were shifted in favour of Jubilee Insurance, KahawaTungu has learnt.
This desk learns that the tender ad that ran on newspapers was a PR stunt meant to hoodwink the public, as Jubilee had already retained the tender, only waiting to be announced.