TSC Accused of Bias in Insurance Tender

Busia Senator Okiya Omtatah on Wednesday, 26th October, 2022 has accused the Teachers Service Commission (TSC) of flouting the law in the award of the tender for the provision of medical services to more than 300,000 teachers across the country.

Omtatah, at a press conference, accused TSC of skewing the tender to lock out potential insurance providers.

The Senator threatened to make a formal complaint and demand for intervention by law enforcement and the relevant government agencies including the Ethics and Anti-Corruption Commission (EACC), the Public Procurement Regulatory Authority (PPRA), Parliament and legal redress at the High Court.

Omtatah argues that although the procuring entity (TSC) has the right to set its own minimum standards for potential bidders, both the constitution and the Public Procurement laws do not allow public officials to collude with potential bidders. 

“Since the law protects the public from corporate capture, government institutions must provide an environment where the public can get value for money,” said Omtatah.

He argued that they should reconsider some of the requirements, adding that TSC should ensure that the teachers’ medical insurance cover is done in accordance with the provision of article 227 (1) of the Constitution and procurement laws.

The teachers’ employer had in August published a Sh35 billion open tender for Medical Insurance Providers to place their bids. In the tender documents, the consortium leader should manage a premium under the business place of a Total Gross Premium of a minimum of Sh5 billion in 2021.

The documents also show that the lead consortium must provide tender security of Sh300 million. 

Omtatah had also claimed that the actions by TSC contravene article 227 (1) of the Constitution which requires that when a State organ or any other public entity contracts for goods or services, it shall do so in accordance with a system that is fair, equitable, transparent, competitive and cost-effective.