Electoral commission defied expert advice in Sh3.8bn polls kit tender

Independent Electoral and Boundaries Commission chairperson Wafula Chebukati (left) and CEO Ezra Chiloba after the press conference in Nairobi on February 21, 2017. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • Safran Identity and Security had been disqualified by a six-member committee set up to evaluate the bids by 10 companies that had expressed interest in supplying a system for voter identification and results transmission for the August 8 General Election. 
  • Safran was chosen because “it had undertaken to deliver the technology within the statutory timelines” of May 10 this year, said Mr Chebukati.
  • Gemalto SA, which had initially won the tender, has consequently challenged the electoral commission’s move to cancel it.

Electoral Commission chiefs went against the advice of their own tender evaluation committee and went ahead to award a Sh3.8 billion contract for the supply of voter technology to a French firm which had failed to meet the criteria set out in the bid document.

The Nation has learnt that the firm – Safran Identity and Security – had been disqualified by a six-member committee set up to evaluate the bids by 10 companies that had expressed interest in supplying a system for voter identification and results transmission for the August 8 General Election. 

Despite the disqualification, the Independent Electoral and Boundaries Commission announced last Friday that it had resolved to directly procure the election equipment from Safran, following the cancellation of a previous tender awarded to Gemalto SA – another French firm.

TENDER CANCELLED

Commission chairman Wafula Chebukati said the tender was cancelled because Gemalto SA, the only company that had gone to the level of financial evaluation, had quoted Sh5.2 billion against the available budget of Sh3.8 billion.

The company, he said, was also incapable of meeting the commission’s operation and legal timelines to manufacture, delivery, install and commission the system.

Safran was chosen because “it had undertaken to deliver the technology within the statutory timelines” of May 10 this year, said Mr Chebukati.

“The commission has a preventive and maintenance contract for the BVR system with Safran for the next three years. During the register preparation, Safran is supporting the commission to ensure that we have a credible and reliable biometric voters register to be used in the election,” he said, adding “We are confident that using Safran at this point in time, there is guarantee for compatibility, timely delivery and accountability in the deployment of the new system.”

UNSUCCESSFUL BIDS

The other companies that submitted unsuccessful bids were Bigradap Group and Novus Holdings limited from South Africa, Super Tech STL Limited of the British Virgin Island and Compulynx of Kenya.

Others were Smartmatic International Holding B.V of the Netherlands, Avante International Technology (USA), Indira Sistemas S.A (Spain) and Lithotech which did not provide its address details.

The commission’s decision flies in the face of recommendations by the tender evaluation committee, which had identified several anomalies in the Safran bid.

According to a report by the committee seen on Monday by the Nation, the company had been disqualified because it’s copy of certificate of incorporation had indicated it had been in existence for nine years, two months and 18 days, as opposed to the 10 years requirement.

The company had also provided an expired tax compliance certificate and its accounts had not been signed by any external auditors and therefore could not be considered as having been audited.

“Some pages of the submitted bid documents were not serialized,” reads the report.

The other companies were also disqualified for reasons such as failure to produce tax compliance certificates and proper credit rating papers from an accredited rating agency.

WON THE TENDER

The evaluation committee was chaired by Mr David Towett with Mr John Miring’u being its secretary. Other members were Mwaura Kamwati, Ibrahim Juma, Gabriel Maikan and Joseph Nzano.

Gemalto SA, which had initially won the tender, has consequently challenged the electoral commission’s move to cancel it.

In a letter to the IEBC chief executive Ezra Chiloba, the firm said it had the capacity to deliver the system within the legal timeframe of April 10, 2017.

“We submit that you consider this letter as a non-contentious approach in order to restore the tender process and begin the important work without any further delay,” said the letter signed by Charles Mevaa, its Vice-President, Africa Government Business.

Mr Chiloba wrote back saying: “Your financial bid was significantly above the budgetary provision. The commission (also) considered that there would be no value for money to retain the voter registration component in Kenya Integrated Election Management System (Kiems) at present.”

Further, Mr Chiloba told the firm that the April 10 timeline for the procurement of the system had presented a huge challenge to the commission.

“Given the remaining legal steps to conclude the tender, it will be almost impossible for the commission to execute its mandate within the statutory timelines,” he said.
But in their response, Gemalto SA said IEBC should have engaged with them to ensure the success of the tender.

“We offer this response in good faith with a willingness to engage with the commission to ensure success of the Kiems project. By this letter we request an opportunity to engage with the commission in order to address its understandably pressing concerns,” the firm said, adding that on the budget, IEBC should have negotiated with it on the quoted price.

NEW OBLIGATION

“We also take the view that the Kiems project was a new obligation introduced by the Elections Laws (Amendment) Act 2016 subsequent to the 2016/17 budget cycle and perhaps a determinate budget provision would have been difficult.

On the law and the deadlines to be met, Gemalto argued that IEBC should have sought clarification regarding its “capacity and commitment to a mutually agreeable delivery timeframe.”

“We do have a track record of successfully deliveries of large scale projects, including elections-related solutions, within challenging lead times,” said Gemalto.

IEBC had argued that since voter registration was part of the features the new system should have and having been overtaken by time, the firm should be removed from the deal.

“Our response is that whereas voter registration is a critical part of the Kiems project, the drive undertaken in January does not fundamentally or substantially alter the technology. In our view, the voter registration undertaken in January was conducted using a similar technology as the register which subsisted at the time of calling off the tender,” the firm argues in the letter.

The firm said that had it been asked it could have altered its modifications to fit the specifications.

“We submit that the technology offered by Gemalto SA offers a unique opportunity to the commission to fully integrate the full range of technology envisaged by the commission including the cumulative progress of the voter registration. Our solution is also adaptable to the specific needs of the Commission,” the firm said.