Lawsuits loom as Prisons cancels Sh6bn tender for crucial supplies
What you need to know:
- The winning bidders claim the cancellation of tenders mid-course was done ostensibly to lock out strong candidates in favour of preferred ones.
Correctional Services PS Zeinab Hussein confirmed her office had suspended the tenders over “flaws and anomalies” involving Sh6 billion pending bills.
The department has now re-advertised the tender, which effectively cancels the initial awards.
The country could be up for another round of tender wars after successful bidders vowed to sue the State Department for Correctional Services for quietly suspending a multibillion shillings tender it had awarded them.
The department, which falls under the Ministry of Interior and Coordination of National Government, had on May 29, sent tender award notifications to the successful bidders for the supply and delivery of prisoners’ and trainees’ foodstuff, for the 2018/19 financial year.
PREFERRED
The department has now re-advertised the tender, which effectively cancels the initial awards.
The winning bidders, who spoke to the Nation in confidence and are yet to be officially informed of the latest development, claim the cancellation of tenders mid-course was done ostensibly to allow a fresh start in which the contract terms are changed to lock out strong candidates in favour of preferred ones.
Correctional Services Principal Secretary Zeinab Hussein confirmed her office had suspended the tenders over “flaws and anomalies” involving Sh6 billion pending bills.
APPROVAL
The PS has written to the Public Procurement Regulatory Authority (PPRA) and the Attorney-General for legal advice on the matter. Others investigating the matter are a team of 26 auditors, the Directorate of Criminal Investigations (DCI) and the Ethics and Anti-Corruption Commission (EACC).
She flagged the procurement process saying the tendering commenced before the preparation and approval of her department’s procurement plan and budget.
A committee formed by the PS also found out that officials who opened the bids were also part of the evaluation process, contrary to the Public Procurement an Asset Disposal Act.
NON-RESPONSIVE
Tenders were opened on April 24 and evaluated on May 28.
Additionally, contracts were yet to be signed within 14 days from the date of the award, should there be no appeal.
Notifications of intention to enter into contracts with the successful tenderers for the Nairobi area were done by the procurement head, which also contravenes the same law. In the tenders awarded for prisons outside Nairobi, Mrs Hussein said the evaluation committee recommended award for non-responsive bidders so as to increase the supply base. These tenders were also amended to include building materials, items not in the original tenders.
AGREEMENT
“Being new in the department, and noting that the contracts had not been signed by June 14 as stated in the notification of award letters, there was need to understand the reasons and to confirm the integrity of the process before signing the contracts,” said Ms Hussein.
But the awardees are yet to receive letters suspending their award letters which are considered a formal agreement. It is on this premise that they intend to move to court.
“Most of us have been supplying on the strength of the award letters and we are yet to be paid. All that will now be lost. We are moving to court,” said one supplier.
COMPETITORS
The PS admitted a letter written by her department’s procurement manager to the awardees was erroneous.
Another supplier accused the Prisons Department of tailoring procurement terms to fit preferred bidders and lock out competitors at exceptionally high costs to the taxpayers.
“Corrupt tender committees are also using restricted tendering, a procurement method that limits the request for tenders to a select number of suppliers, contractors or service providers, against the spirit of the relevant law that specifies circumstances for restricted bidding,” the supplier said.
ESSENTIALS
Now pending investigations and the new advertisement, the ministry has contracted Supplies Branch under the Ministry of Transport, Housing and Infrastructure to be supplying essential commodities to all prisons.
This decision was made under the guidance of PPRA director-general Maurice Juma, in a confidential letter to PS Hussein which was obtained by the Nation. Mr Juma also said the procurement has been tainted with irregularities and most of the anomalies cannot be corrected to allow the process to continue.
Sources at the Industrial Area Remand Prison told the Nation the suspension of the food supply tender has affected operations, occasioning food and fuel shortage. However, Commissioner of Prisons Isiah Osugo denied the claims.
