Earl Moxam, Senior Gleaner Writer

Cabinet has rejected the proposal for the award of the public sector health insurance scheme to Life of Jamaica (LOJ and has instead instructed that the contract be again put to tender.

In the interim, Blue Cross of Jamaica, the long-standing service provider, will continue providing the service. The decision to award the service contract for the Government Employees Administrative Staff Only (GEASO) group to LOJ had been shrouded in controversy from the time of the announcement earlier this year.

Strong objections

GEASO's monitoring committee (made up of a wide cross section of public sector workers) voiced strong objections to the award on the basis that it was not involved in the decision to make the recommendation.

GEASO highlighted the fact that the actuary who evaluated the competing bids had assigned the highest number of points to Blue Cross, in keeping with the evaluation process set out in the request for proposals.

Under mounting pressure, the last administration put the decision on hold pending a review of the process.

Senator Dwight Nelson, Minister without Portfolio in the Ministry of Finance and the Public Service, announced the latest decision during yesterday's sitting of the Senate.

He said Cabinet had "expressed dissatisfaction" with the (award) process and had rejected the recommendation to award the contract to LOJ and instructed that the procurement exercise commence de novo (start afresh).

The recommendation that has been rejected came initially from the Ministry of Finance & Planning under the former People's National Party administration, but was carried forward by the newly constituted Ministry of Finance and the Public Service.

Senator Nelson explained that a committee met under his chairmanship on three occasions in November to review the decision to award the contract to administer the health scheme.

The committee consisted of three GEASO members and three representatives of the finance ministry.

It also heard from the Attorney-General's Department, the actuarial firm, Coke and Associates, the Police Officers' Association and resource personnel from the Ministry of Finance and the Public Service.

The committee had commenced meeting under the chairmanship of Fitz Jackson, then Minister of State in the Ministry of Finance and Planning, prior to the September 3 general election.

Fresh requests for proposals will be issued in January, with a view to a new contract award being made, Senator Nelson said.

Cabinet has 'final authority'

The initial recommendation by the Finance Ministry that LOJ be awarded the contract was endorsed by the National Contracts Com-mission (NCC).

Senator Nelson told his colleagues, however, that it is Cabinet (not the NCC) that has the final say in the matter where contracts are worth in excess of $15 million.

"Cabinet is not bound by any recommendation," he reiterated.

In arriving at the latest decision, he said, Cabinet took cognisance of the advice of the Attorney-General's office that "Cabinet has the final authority to decide whether or not to approve the award of the contract".

As at July 2007, some 176,606 persons were registered under the health scheme. The beneficiaries include approximately 66,000 government employees and their dependents. The Government of Jamaica contributes $171 million per month to the scheme.