KUWAIT CITY, Aug 10: The State Audit Bureau (SAB) has rejected the tender for the provision of health insurance to the employees of the Communications Authority because the price offered by the winning bidder is higher by more than 40 percent than the estimated cost. Sources pointed out this decision portends a dispute between the authority and SAB. They said the bureau explained that after approving the tender, the price increased due to several factors like limiting the bidding to companies listed on Boursa Kuwait; hence, the lower number of competing companies.

They added the bureau cited other factors like the detailed loss rates in the last three years of the tender, which led to the failure to verify the suitability of the price offered by the winning bidder and the inability of companies to offer a fair price; as well as canceling the employees’ deductible percentage in hospitals and medical centers associated with the winning bidder, and full coverage for chronic diseases such as high blood pressure and diabetes. Sources revealed SAB refused to contract with an insurance company at the end of last year, after studying the related documents. They confirmed that the bureau recently addressed Minister of Commerce and Minister of State for Communications Affairs Omar Al-Omar about the different opinions on the offer of a company amounting to KD 732,100.

By Mohammad Al-Musleh
Al-Seyassah/Arab Times Staff