Agency boss sued over Sh2bn tender
Geothermal Development Company (GDC) Chief Executive Officer Dr Silas Masinde Simiyu when he appeared before the Public Investment Committee on March, 2014 over the Management of the company. He has now been sued over a controversial multi-billion tender awarded to a Chinese firm. PHOTO/EVANS HABIL
What you need to know:
- Geothermal Development Company chief executive Silas Simiyu is accused of irregularly awarding the tender.
- The petitioners accused the CEO of refusing to “step aside” pending the outcome of an investigation which was triggered by a parliamentary committee.
- In March 2014, The Public Investments Committee also questioned Dr Simiyu questioned the director over the agency’s procurement of the additional drilling rigs.
A director of a parastatal has been sued over a controversial multi-billion tender awarded to a Chinese firm.
In a case certified as urgent at the High Court in Milimani, Geothermal Development Company chief executive Silas Simiyu is accused of irregularly awarding the tender.
The tender revolves around the buying of an electrical rig which was awarded to Sichuan Honghua Petroleum Equipment after it quoted Sh2 billion(US$21.5m).
The petitioners, Mr Ephantus Mbuthia Githae, Mr James Mwangi and the Kenyans for Governance lobby accused the CEO of refusing to “step aside” pending the outcome of an investigation which was triggered by a parliamentary committee.
“By a letter dated January 9 2013 you unconstitutionally, illegally and without any authorisation from the board and the African Development Bank....purported to award the tender to the said Honghua limited...” read the suit papers.
The petitioners argued that the director “materially” misrepresented his ability to award the tender.
They said that the CEO did not seek or obtain the approval of the board when awarding the tender.
“All the awards and resultant contracts were signed by you alone...for and behalf of GDC without the concurrence and signature of any other members of the board of directors,” the petitioners said in affidavits before court.
They cited a document dated December 16 last year between the State corporation and the company in which the contract price is in excess of Sh129 million (US$ 1.5 million).
“Procuring an additional rig unilaterally without prior approval was a reasonable violation of the law and procurement procedure,” the joint affidavit read.
Questioned
The suit papers indicated that in 2011, the agency secured a loan of about US$ 45 million (Sh3.8 billion) from the Africa Development Fund to secure two rigs after agreeing to use limited international bidding tender procedures.
In March 2014, The Public Investments Committee also questioned Dr Simiyu questioned the director over the agency’s procurement of the additional drilling rigs.
He however denied the claims.
