Africa Merchant Assurance Co. Ltd (Amaco) which is associated with Deputy President William Ruto has won a tender to become Nairobi County Government insurance provider for vehicles and motorcycles.
DP Ruto's firm wins Sh190M Nairobi county gov't tender
The tender had initially been cancelled by the Public Procurement Administrative Review Board.
A report by Business Daily on Tuesday, November 30 said that the tender was worth Sh190 million.
The tender had been cancelled by the Public Procurement Administrative Review Board in 2020 but the courts recently ruled that the PPARB overstepped its mandate.
Justice Pauline Nyamweya was convinced that Amaco proved to be the successful bidder after the end of a 14-day statutory period.
She also noted the company had signed a contract on April 30, 2020 and had started rolling out the insurance covers.
“The ex parte Applicant (Amaco) is therefore entitled to the orders sought of certiorari to quash the said decision, in light of the applicable principles as regards the grant of this remedy,” the Judge ruled.
Start of the tender dispute
Madison General Insurance and Britam General Insurance filed a challenge to the tender, claiming that they were not informed that their bids were unsuccessful.
During the hearing, the procurement board was also informed that Amaco was the subject of an insolvency proceeding.
Following the hearing of the case, the board directed Nairobi City County to conduct a new assessment of tender bids, excluding Amaco.
Amaco then petitioned the High Court, claiming that there was no request before the board to annul the tender and that the board neglected to consider that the parties proceeded to perform the contract after signing it.
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