Foreign Affairs secretary Amina Mohamed talks during the World Trade
Organisation conference held in Nairobi. photo | diana ngila | nmg
The management of Kenyatta International Convention Centre
(KICC) is on the spot for offering irregular contracts worth Sh1.4
billion — some to fake companies — during the World Trade Organisation
(WTO) conference held in December 2015.
Auditor-General
Edward Ouko singled out the KICC chief executive officer for personally
awarding 15 out of 17 tenders through single sourcing.
Mr
Ouko also accused the KICC board of direct involvement in the revision
of tenders, especially the supply and installation of computerised
conference management systems.
Mr Ouko said that out of
17 projects implemented during the WTO period, only five went through
tender bids, but through restricted tendering.
“Of
these five, only two were considered by the tender committee. Available
information indicates that the awards for 15 tenders were done
singularly by the chief executive officer through single sourcing while
making reference to non-existent bids for tenders by fictitious
companies in total disregard of the tender committee,” the auditor said
in a qualified audit opinion tabled in Parliament.
“In
view of the foregoing, the corporation was clearly in breach of the
Public Procurement and Disposal Act 2005, and Regulations 2006, and may
not have received value for money from WTO projects through the flawed
procurement process.”
Mr Ouko said awards to 15
different companies were done on diverse dates between July 13, 2015 and
September 30, 2015 for Sh1,432,333,345.
Kenya hosted the high level meeting in Nairobi between December 15 and 19, 2015.
The
forum led to the adoption of six ministerial decisions on agriculture,
cotton and issues related to least-developed countries (LDCs). Cabinet
secretary for Foreign Affairs and International Trade Amina Mohamed
chaired the conference.
The audit further revealed
that six of the 15 tenders were cancelled due to delay in release of
funds, exposing KICC to legal suits.
“In some
instances, award letters were terminated but the signed contracts were
not terminated hence exposing the corporation to litigations and
resultant costs. Only five of the 15 companies had signed contracts
which amounted to Sh894,976,341,” Mr Ouko said.
He said
that a local company had signed a contract worth Sh64.9 million even
though it had not been issued with an award letter for the tender.
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