Fate of Sh13 billion ICT project hangs in balance

Fibre-optic cable being laid in Nairobi. FILE PHOTO |

What you need to know:

  • The project is one of the key developments initiated by the government to improve service delivery in the devolved government using IT.

  • A disagreement between the ICT Authority and Osano & Associates, which was awarded the contract, could make all the counties lose on the project.

  • The World Bank had also through a letter dated February 1, said it has looked into the allegations of fraud and has concluded that the allegations were without merit.

The fate of a Sh13 billion Information, Communication and Technology (ICT) project intended to improve service delivery in all the 47 counties hangs in the balance after a contract dispute arose between the ICT Authority and a firm supposed to implement the project.

The World Bank-funded project has a strict deadline on implementation and is supposed to be concluded by December this year, or else the funding will be withdrawn.

The project is one of the key developments initiated by the government to improve service delivery in the devolved government using information technology.

However, a disagreement between the ICT Authority and Osano & Associates, which was awarded the contract, could make all the counties lose on this noble project.

In December, last year, High Court Judge Eric Ogola declined to allow the termination of the contract by the ICT Authority, saying that the Authority had failed to prove allegations of fraud on the part of Osano & Associates, as the basis for termination.

FRAUD ALLEGATIONS

“Allegations of fraud and corruption must be properly investigated in an open and fair manner before a party can be denied its right under the contract based on such allegations. It is the finding of this court that the intention by the ICT Authority was to incapacitate Osano & Associates, by hitting it hardest, denying it the very contract,” ruled Justice Ogola.

The judge directed that the dispute be referred to arbitration as provided in the contract between the two parties, and stopped the ICT Authority from interfering with the said contract pending the determination of the arbitration case.

Osano & Associates got a major boost after the Director of Public Prosecution (DPP) on January 25 this year returned a no case to answer verdict, in relation to the allegations levelled against it by the ICT Authority.

The World Bank had also through a letter dated February 1, said it has looked into the allegations of fraud and has concluded that the allegations are without merit adding that, “there is therefore no integrity basis which the Bank is aware for the government not to honour the contract.”

However, the ICT Authority has approached the Court of Appeal seeking to stop the enforcement of the High Court decision saying Osano & Associates has misinterpreted the court orders and issued a demand that it be allowed to continue carrying out duties under the contract while the matter is before arbitration.

In response however, Osano & Associates questioned the Authority’s motive saying that even through it has appreciated that the project is time sensitive, it has come to the appellate court to stall it.