Donors raised queries in Kenya Power tender, court told

The World Bank (WB) and donor community demanded action against Kenya Power officers who flouted the law in Sh159m fraudulent tenders, the court heard.

Anti-graft court trying former Kenya Power managing director Ken Tarus and eight others over irregular picking of companies for tender heard that the WB, donor community, senate and parliamentary Energy committees raised concern and demanded immediate action over the tenders.

PROCUREMENT RULES

Testifying for the third day, internal Auditor, Mr Charles Cheruiyot Kipng’eno said officials from the WB and Energy committee members from both houses, 10 officers from the Directorate of Criminal Investigations (DCI) went to his office to pick the reports he had gathered over the tender.

Mr Kipng’eno who carried out an investigation into the saga told Chief Magistrate Lawrence Mugambi that two members of the tender committee opened the bids in total violation of the public procurement rules.

The auditor said : “ The tender should have been cancelled as it was opened by two members Eng Evelyne Pauline Amondi (from the user department and Mr Bernard Githui Muturi ( secretary of the tender and evaluation committees) instead of three.”

He said the third member was Mr David Makenzi from the legal department who did not turn up for the exercise.

Responding to questions from a State prosecutor Mr Alexander Muteti , the witness, said , “ the tender should have been cancelled as it was not  a matter of life and death.”

PROXIES

Mr Kipng’eno said the appointing authority of the tender committee who was Dr Tarus should have been informed to advice accordingly.

The court heard that companies which had not applied had been shortlisted through third parties and proxies.

The auditor said the KP Board recommended that all companies which were prequalified irregularly be black listed.

It was also directed that officers who had leaked the audit report to the public be identified then proper action taken against them.

Also the committee directed the ICT department to explore the use of technology to avoid leakage.

DUE DILIGENCE

“Did you leak the audit report yourself,” Mr Muteti asked Mr Kipnng’eno who responded in the negative.

He added that the Kenya Power board committee directed that due diligence be followed at all times when sourcing for external services.

He stated out of the 1,354 applications only 525 were prequalified.

Dr Tarus and the eight others are charged with conspiring to commit an offence of economic crime by carelessly failing to comply with the procedures and guidelines relating to procurement which led to fraudulent payment of Sh159,195,364.41 to companies that were unprocedurally prequalified for labour and transport services vide tender No KPI/9AA-2/58/PJT/16-17.

UNPROCEDURAL

A forensic investigator and second witness , Mr Argwings Kodheck Ochily who audited the unprocedural pre-qualification for labour and transport sevices faulted two the tender committee for violating the law by opening the 1,354 bids.

“ The bids should have been opened by three members and not two,” Mr Ochily stated.

The nine have denied six counts against them and are out on bond. Hearing continues.