Sh2bn cranes tender put on hold as firm goes to court

PHOTO | FILE A Kenya Ports Authority loader. The authority says Mwinyi’s father was paid retirement gratuity amounting to Sh51,643.50 in 1992, following his retirement.  NATION MEDIA GROUP

By PAUL OGEMBA
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A judge has stopped the award of Sh2.5 billion tender for the supply of cranes at the port of Mombasa.

Mr Justice George Odunga stopped the tender after an urgent application by Kocks Krane GMBH, which claims that the Kenya Ports Authority (KPA) irregularly awarded the contract to Liebherr Container Cranes Company.

The judge also gave Kocks Kranes GMBH the greenlight to challenge the entire proceedings and subsequent award of the tender for supply, installation and commissioning of three ship-to-shore cranes awarded to Liebherr Container Cranes Company on August 30.

The company was further allowed to seek the nullification of the Public Procurement Administrative Review Board’s decision which allowed KPA to proceed with the tender’s award despite an appeal the firm had filed with the board.

“Kocks Krane is further granted leave to apply for an order prohibiting KPA from entering into contract with Liebherr Container Cranes Company until this case is heard and determined,” said Justice Odunga.

The disputed tender contract put KPA top managers on the spot after the public procurement board stopped it in early October.

KPA awarded the tender to Liebherr Container Cranes but the procurement review board stopped it from signing the contract pending investigations over allegations that procurement rules were not followed.

The tenders include those for the supply, installation and commissioning of one pilot cutter, 13 reach stalkers, 14 new terminal tractors, 20 new skeletal trailers as well as the supply of grabs, mobile harbour crane and 10 ribbed type pneumatic rubber fenders.

Initially, the port had told the oversight authority that other bidders were likely to suffer prejudice if it disclosed details concerning the tender.

Disclosure of information

In response to the KPA position, the procurement oversight authority noted that regulations did not prevent the disclosure of information for the purpose of law enforcement and investigations.

Both the procurement oversight authority and the review board launched investigations into the tender after Kocks Krane GMBH, through its local agent — Federal Supplies Agencies Ltd — lodged a complaint against KPA.

In its application, Kocks Krane says the port did not process the bid in accordance with the dictates of the tender document that would have guaranteed fairness of competition among the bidders.

The company also claims that the tender was not evaluated in accordance with the criterion given in the document.

It says KPA erred by recommending that Liebherr Container Cranes, through their local agent Alatir Ltd, be awarded the tender without meeting some mandatory requirements.

The company also argues that Alatir Ltd had furnished KPA with information concerning the constitution of the company directors, contrary to the contents of the Business Questionnaire Form, which is a standard form in bid documents.

It also contends that the listed directors were different from those listed at the Registrar of Companies.

The case will be heard on November 12.