Wednesday, January 21, 2015

Japanese car inspection firm in court battle to retain Kebs job

Corporate News
Kenya Bureau of Standards (Kebs) has stretched contracts by another three months for two of the three firms that inspect vehicle imports. PHOTO | FILE |
Kenya Bureau of Standards (Kebs) has stretched contracts by another three months for two of the three firms that inspect vehicle imports. PHOTO | FILE |  NATION MEDIA GROUP
By BRIAN WASUNA, bwasuna@ke.nationmedia.com
In Summary
  • Japan Export Vehicle Inspection Centre (Jevic), which inspects the quality of second hand vehicle imports on behalf of the Kenyan standards body, has filed a petition in which it has asked the High Court to compel Kebs to extend its contract until January 15.
  • Kebs left Jevic out of the contract extension but retained two other firms that had been part of the old tender.
  • Jevic has provided inspection services for Kebs for the last seven years, and claims that annual audits of its operations have always yielded commendation from Kebs.

A Japanese second hand car inspection firm wants the Kenya Bureau of Standards (Kebs) compelled to extend its contract until a tender dispute over the services is resolved.
Japan Export Vehicle Inspection Centre (Jevic), which inspects the quality of second hand vehicle imports on behalf of the Kenyan standards body, has filed a petition in which it has asked the High Court to compel Kebs to extend its contract until January 15.
Jevic moved to court after Kebs opted not to renew its contract.
Kebs had in November last year evaluated interested bidders for the vehicle inspection role. It informed Jevic in December that it would not renew the vehicle inspection deal the two had, as another firm had won the evaluation process.
The Japanese firm applied for a review of the tendering process after it was informed that another firm had beaten other interested bidders.
Kebs left Jevic out of the contract extension but retained two other firms that had been part of the old tender.
Jevic now wants to be included in the three month extension alongside Quality Inspection Services In and Auto Japan Terminal, as it claims its exclusion from the deal is malicious.
“No reason was proffered by Kebs as to why Jevic was excluded from providing inspection of motor vehicle services pending the determination of the review board. Should Jevic not be granted the extension, it stands to suffer substantial loss,” Jevic said.
The firm adds that it has already leased land intended for the inspection of vehicles being imported, and it is unable to renegotiate the terms of the leases, which will deal it a loss.
Kebs is yet to respond to the claims in Jevic’s suit. Jevic has provided inspection services for Kebs for the last seven years, and claims that annual audits of its operations have always yielded commendation from Kebs.
“The conduct of Kebs has been such as to not only suggest bias against Jevic. The bias against the petitioner has been evident since August, 2014,” Jevic holds.
The firm was however last year put on the spot after several imported cars were found to have radioactive material, an incident that led to a standoff with Kebs over responsibility. Parliament on that occasion threatened to blacklist Jevic.
The Public Procurement Appeals Committee has twice postponed delivery of its ruling on the tender review, causing panic among second hand vehicle importers who feared that further delay could see their businesses stall.
Kebs had in August last year cancelled Jevic’s contract five months before expiry, but maintained QISJ and ATJ.

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