Battle for state tenders and the wrath of brokers

Two different stories in two different local papers about the same engineering company could not have been more different from each other or talked so differently about the same firm. The first story appeared on June 26 and tightly tied Apec Consortium Limited to suspended Transport Cabinet Secretary Michael Kamau like a foetus to an umbilical cord.

Its portent was clear: Apec has nailed down many lucrative government tenders, including the Thika Superhighway and the standard gauge railway (SGR) because it has been led by hand by Eng Kamau as Transport Permanent Secretary and CS. Therefore, the story said, with Mr Kamau ensnared in graft cases, Apec was itself the subject of a graft probe.

The second story was carried on June 30 and, significantly, it appeared in a supplement celebrating local talent, innovation and products. Its headline read: Setting new benchmarks for local engineering. Second, unlike the first story whose sources remained anonymous, this one generously quoted the Apec Managing Director James Karanja.

Its import was clear: Apec has been in business for 20 years; it has a profile; is not chaperoned by anyone and wins tenders on merit. It said Apec’s first major consulting job for the government was the design, review and construction supervision of the Moi International Airport in the 1990s and, with that on its resume, the sky is the limit.

POWER OF REPUTATIONS

Was the second story a reaction to the first? Perhaps, but armed with knowledge of the cut-throat competition and vicious bidding wars for government tenders – big or small – and aware of the power of reputations and the cost of building them, I am persuaded that the first story hurt and cut Apec and delighted its competitors. Why?

One, the fight for consultancy services for the design, review and construction supervision of the SGR and procurement and installation of facilities, locomotives and rolling stock, pitted the consortium of which Apec is a member against Team Engineering Spa of Italy and Korea Rail Network Authority.

It was and remains bitter, but is far from over even as SGR nears the 200 kilometre mark of the 600 since signing of contract on June 3, 2014. Team appealed against the award of the tender to the Apec consortium to the Public Procurement Administrative Review Board (PPARB) on June 6, 2014. The PPARB dismissed the appeal on June 24, 2014.

Dissatisfied, Team went to the High Court, but in its ruling of September 1, 2014 the court did not find for the applicants. Team appealed against the High Court’s ruling in November. The matter is still pending before the Court of Appeal. Team claims the winner lacks the capacity to perform the contract, did not bid for the tender and the process was corrupt.

This is why Team’s politically well-heeled and moneyed local brokers would have been delighted with the first story about Apec and why the latter, caught unawares, would have moved to right its image.

Two, the current runs deeper; this is not a fight for or about the past but the future. Apec and its rivals are going to lock horns sooner rather than later.

Both know that neither can afford to go into the next bidding war with a damaged reputation and, coming up soon is the concession for multi-billion-shilling Phase II of the expansion of the Port of Mombasa, which is to be funded by the Japan International Co-operation Agency. The war may have started with the June 26 story, necessitating the June 30 counter.

This brings us back, again, to the so-called war on corruption. Mr Kamau has been charged and his bitterness has been evident and very public persuaded he was hang out to dry by brokers whose bidding he refused to do. Who is investigating brokers who threaten public servants with dire consequences if their clients don’t get the tenders they want?

Who will protect innocent Kenyans who just want to bid and compete fairly? And, remember there are two sets of brokers. There are those who claim allegiance to the President’s The National Alliance (TNA) or the President himself. And there are those who claim allegiance to the United Republican Party (URP) or the Deputy President himself.

How do you avoid or compete against ravenous and mendacious URP, and or moneyed TNA, tender brokers if you are law-abiding, play-by-the-rules, civil servants, individuals or company? Who, I ask again, will protect innocent Kenyans against brokers eager to paint and taint them with the brush of corruption for selfish reasons?

Opanga is a media consultant; [email protected]