Kenya Ports Authority (KPA) MD William Kipkemboi Ruto has found himself in the spotlight over a controversial Sh3 billion awarded to a Chinese firm.
The tender in question TENDER NO: KPA/156/2023-24/TE- DESIGN, MANUFACTURE, SUPP. TENG AND COMMISSIONING OF TE (20) FULLY BUILT RUBBER TYRED GANTRY CRIMES 23 y/(RTG) had been put under investigation by Ethics and Anti – Corruption Commission (EACC) according to a letter seen by Kenya Insights addressed to the MD dated 23rd April.
Despite the authority being aware of the situation, Mr. Ruto hurriedly awarded the tender on 26th, barely 72 hours later to M/s. Jiangsu Rainbow Industrial Equipment Co. Ltd disregarding the anti-corruption body’s warning.
The actions of the MD to hurry the award is what had rose curiosity with suspicions that it could’ve been marred with corruption.
In the letter seen by Kenya Insights, EACC informed the MD that it had received complaints about the particular and had receipts that it was marred with corruption and warned against breaking the law by awarding.
“The Commission is in receipt of a report on allegation of corruption and malpractices in the tender process of the aforesaid tender currently ongoing at the Kenya Ports Authority. This is therefore to urge for the strict adherence to the Public Procurement and Asset Disposal Act, 2015 as well as other related laws that govern procurement and management of public resources.” Part of the letter read.
Being an agent matter, the commission had requested the MD to supply it with vital tender documents to aid in the investigations. However, this was disregarded and Mr. Ruto went ahead and awarded the contract.
EACC is the body mandated to conduct investigations on complaints touching on corruption, economic crime and unethical conduct.
President William Ruto a nemesis of the MD campaigned on a no corruption pledge and has on several occasions reiterated his stand of no tolerance for corruption.
The dismissive step by the MD who also hails from the same Rift Valley region leaves a lot to desire with many who will now be keen to see which action the EACC will take given that it’s investigations has been ignored thereby undermining its authority.
One insurance tender fiasco no 037 of July 2022 is haunting outgoing MD John Mwangemi. The procurement unit prepared this controversial tender that saw the head of procurement appeal board intervene.
Amb. John Mwangemi
Facts emerging are that the procurement department was sidelined in the award that rested in the hands of the legal department then under Andrea Dena and that of finance manager during tender award.
It should be noted that legal unit of KPA which has always had interest in thia tender pulled all stops even to the extent of leaking documents to some parties and case taking long with their preffered bidder, liaison having extensions.
The tender did not proceed as indicated as the current bidder, Liaison insurance was pulling behind the scenes to ensure the specifications met his preference especially for the lucrative dollar accounts incorporating the general manager legal department. What remains was to get a favorable committee.
While this as ongoing the draft document was leaked whereby all brokers and underwriters managed to get to know what was happening. The document was leaked from insurance office to some bidders who managed to share and go through it. It was then discovered that the document was tailor made to fit a certain firm and in this case, specifically tailored for Liason insurance.
This firm has managed to capture the insurance wing at KPA. They control who gets tenders, especially in the High-Value Insurance. They’re assisted in this for the last six years by some three senior officers in the legal department name withheld. The tender document for upload to the portal was done around late October to close on November 4 2022. No sooner had the tender been uploaded than a flurry of queries flew in fast. Tender office was vindicated as most of the queries were of hoarding information by the user department.
It is worth noting that the insurance unit that was formally in legal was moved to finance and the head of legal through the insurance officer overrides the manager commercial and insurance thus handling matters within his unit.
Surprisingly, the responses governed by the insurance were done in the legal unit with a copy shared with Liaison Insurance. Word has it that Patrick Nyoike then KLA Finance Manager was to make a kill in the insurance tender.
Some bidders are now contemplating going to the procurement tribunal based on the following reasons: It’s all stated in a letter dated November 20 2022 from the principal officer of insurance submitted through the manager of legal services on December 15 2022 for payment of US 120,000as the variance of port liability for the year ending 2021 a day after submitting the tender report for insurance. Initially this was presented in June 2022 but couldn’t be paid. This is being pushed by the legal officer who was on tender committee and the insurance officer. It was a coincidence it happened that immediately the report was submitted, Liason insurance had been awarded most of the tenders and was still pushing for this particular one.
If a re-insurer is not comfortable with the quotation that has been submitted by the winning underwriter, the committee should have requested to know if the quotation they gave as required in the tender originated from them. Further, a broker is not supposed to discount once a quotation has been given by the underwriter since all of them are given the same quotation. How come then in the final report some firms who seriously discounted their bids were awarded over five line items of the tender that is considered lucrative? What rationale was used, industry players are questioning.
The broker’s price schedule for each policy is usually supported by a price quotation from the recommended underwriter which must be signed and stamped on each page. Only quotations accompanied by the underwriter’s quotations duly signed and stamped by the underwriter’s authorized official(s) are accepted.
The final awards revealed some shocking details. Liaison got 18 out of 34 items and underwriter being Gemini’s Insurance whose fate in the market is currently worrying. How Liaison managed to ensure that they awarded Geminia this account which is currently held by Jubilee is the question.
During the opening, the procurement officer a Mr. Sugou read out all the prices to the bidders. Reason given for this was the habit of some brokers interchanging some prices with some committee members. On the final wards some bidders like Amana who were awarded group life for staff was not the lowest bidder. This account was removed from Liasion to Amana with underwriter as Britam.
It should be noted that some family members of the deceased families have not been paid because of the undercutting or rebating by Liaison.
Through the help of the purported PA to the MD Anderson Mtalaki, the letters of award were signed by the MD on December 24 2022 and sent out to the successful bidders on December 28 2022 to beat the 14 days window deadline before signing of contract. Information from legal which is currently preparing a paper for the MD is that in the case the award is appealed they should continue using the current providers whom they are claiming have experience in handling KPA matters.
The evaluation of KPA insurance tender by KPA was done without the committee putting into consideration the reinsurance arrangements for the risks listed in place.
The ongoing recruitment of dockworkers at Kenya Ports Authority (KPA) has been rocked by claims of corruption including reports that some managers are selling a skit for as much as Sh350,000.
KPA management advertised fir 200 positions of docket grade HG4 in November last year and the closing dates for applications through the authority’s E-recruitment platform. The links given for applications have been tactfully been disabled to discourage many from submitting applications.
Bur now sources claim the process may have been hijacked by cartels in the KPA HE department who’re minting money from applicants.
There are other also claims that some senior officials At National Treasury which is the parent ministry have been allocated slots to employ people of their choice defeating the purpose of E-recruitment which was meant to make the process transparent and accountable.
Requirements for the docket position according to the advert is at least KCSE grade D or it’s equivalent. Sources at KPA say nearly 50,000 applications had been received by the closing date something that is being exploited by cartels to con and fleece some applicants.
DCI, EACC must visit the HR department and save the many desperate jobless youths from being fleeced by this heartless cartel.
The Kenya Ports Authority has suffered a blow after a court temporarily suspended the appointment of John Mwangemi as acting managing director.
Justice Byram Ongaya of the Employment and Labour Relations Court in Mombasa issued the orders on Wednesday, effectively creating a leadership vacuum in the parastatal.
The judge also certified as urgent the case that was filed by the Commission for Human Rights and Justice (CHRJ).
Through its executive director Julius Ogogoh, the lobby group wants the appointment permanently annulled, arguing that it was made in secret and therefore violated the required recruitment process as provided for under the KPA Act and the Public Service Commission Act.
He argues that under the KPA Act, the CS is supposed to make such an appointment in consultation with KPA’s board of directors.
He also argues that the board, which was supposed to have consulted with Treasury Secretary Ukur Yatani before the appointment could be made, is not properly constituted.
The term of the board chairperson and three other board members expired on June 5 this year.
“He neither applied nor was shortlisted in the previous recruitment exercise that was done. The persons interviewed and shortlisted for appointment were rejected by Dr Yatani, who has arbitrarily and capriciously and secretively appointed Mr Mwangemi,” the petitioner said.
Mr Ogogoh argues that the secretive appointment of Mr Mwangemi deprived the other qualified and eligible applicants and the greater Kenya public of an opportunity to serve.
He said Kenyans were also denied their legitimate expectation of an open and fair recruitment process, and the right and opportunity to participate in the hiring process by applying for the position.
Mr Mwangemi was appointed acting MD on July 1. He replaced Rashid Salim, who is on a three-month terminal leave ahead of his retirement in September.
Mr Salim held the position in an acting capacity for more than one year following the abrupt resignation of Daniel Manduku over graft claims on March 28 last year.
Political interference, vested interests and boardroom wars have derailed the hiring of a substantive chief.
The names of nominees submitted to Dr Yatani after the last interviews were rejected for failing to meet the requirements.
