Thursday, April 2, 2015

Investors caught paying bribes to be locked out of state tenders

Deputy President William Ruto with Cabinet Secretary for Foreign Affairs Amina Mohamed and Principal Secretary Karanja Kibicho (right), at the   Kenya Diaspora Easter Investment Conference at Windsor Golf Hotel and Country Club in Nairobi on April 2, 2015. PHOTO | PSCU |
Deputy President William Ruto with Cabinet Secretary for Foreign Affairs Amina Mohamed and Principal Secretary Karanja Kibicho (right), at the Kenya Diaspora Easter Investment Conference at Windsor Golf Hotel and Country Club in Nairobi on April 2, 2015. PHOTO | PSCU |  
By EDWIN OKOTH
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Private sector investors found to have given bribes to win government tenders will be blacklisted and barred from future tendering.
Addressing the fourth Presidential Roundtable that brings together the executive and the Kenya Private Sector Alliance (Kepsa), President Uhuru Kenyatta said the government would amend the law to make the private sector subject to anti-corruption laws.
“I have given directives to the Attorney-General to amend our laws so that those who pay bribes are also targeted, prosecuted and jailed. The law should reflect that the giver is as guilty as the taker,” the President said, adding that those found guilty will have their assets seized to recover what was stolen from the public.
The head of State said besides the “reality of corruption”, there was the “perception of justice” and there were companies that engage in practices that create perceptions of corruption to defeat genuine competition.
Such companies include those who use courts to sabotage tendering processes where they have lost through a fair process.
“If you lodge a case in court and it is proved that you filed the case just to sabotage your competitor, you will be blacklisted and you will never participate in any tendering process in Kenya,” said the President.
COST OF PRODUCTION
Addressing the meeting, Deputy President William Ruto said the government would redefine “local supplier” in its buy-Kenya-build-Kenya initiative to lock out locals importing goods and presenting them as locally manufactured.
“We will lower the cost of production further so that it translates to more locally manufactured products in the market. All our locally produced and manufactured products will be given priority to supply the government. We will redefine local suppliers not as people who are local selling products from China but local people supplying locally manufactured products,” Mr Ruto said.
Kepsa chairman Vimal Shah said although the cost of power had declined significantly, there was a need to ensure quality and stability of electricity to improve the ease of doing business in the country.
He urged the private sector to join hands with the government in fighting corruption, proposing a change to the anti-corruption laws to contain stiff penalties to those giving bribes
“We have signed a commitment to desist from giving bribes to the government officials and ensure that we, the private sector business leaders, ensure corrupt free tender and procurement procedures in all our business dealings,” Mr Shah said.
ILLICIT PRODUCTS
The private sector also expressed concerns about the big losses incurred from counterfeit goods, urging that the anti-counterfeit agency’s work include illicit products so as to cover both substandard and illicit products on the market.
The cost of counterfeits in Kenya is said to have grown tremendously over the past three years, with Kenya currently losing Sh150 billion annually to fakes.
The Presidential Roundtable is held every year to deliberate business issues that require presidential intervention.
The private sector also meet at a ministerial forum every month to discuss issues relating to policies that affect them and their businesses.

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