Fresh details have emerged in the controversial Kenya Ports Authority tender no KPA/073/2019-20/TE supply, testing and commissioning of 12 new reach stackers.
According to sources well-versed with the tender, Rhombus directors from the word go manipulated the tender in their favour by engaging a senior KPA procurement manager Cosmas Makori. And now, industry players want Rhombus banned from engaging in any procurement process for violating ethics. The petition to ban Rhombus is to be delivered to relevant state agencies that oversee procurement.
Cosmas Makori
The procuring entity, KPA, gave 150 days bid validity period and the participating firms were Rhombus Construction Company Limited, Holman Brothers, JGH Marine A/S, ZPMC Engineering (Pty), Konecranes LiftTrucks AB and Ferrari. Others were Joh Achelis Soehne GmBH, Neral Holdings and Kalmar Reach stacker. During the procurement, Rhombus is said to have falsified various documents that are now under investigations by various agencies including Ethics and Anti-corruption Commission and Directorate of Criminal Investigations. Last week, ministry of Transport dispatched a high level team to Mombasa to probe the tender controversy. Also under investigations is Rhombus company profile. The tender was advertised in local dailies in January 2020 and the closing of the submissions of the tender was on May 7 2020 leading to opening of the tender. Rhombus submitted their offer of $5,628, 207.01 while Kalmar Reach Stacker submitted $5,475,000. Going by the quotation, Kalmar was the lowest bidder compared to Rhombus. After it was discovered that Rhombus had filed fake documents and was engaged in high level lobbying, KPA cancelled the tender on August 10 2020 basing on inadequate budgetary provision. The company had already gone through the tendering process and reached the final stage where it had been awarded the tender. The cancellation also came after KPA followed a professional advice that pursuant to section 63 (1) (b), of the public procurement Act, there was inadequate budgetary provision.
Caroline Githinji
On August 17 2020, Rhombus made an application no 119/2020 for review to the Public Procurement Administrative Review Board over the cancellation of the tender the company had won. What surprised industry players is that after discovering it had not met the requirements, Rhombus requested for the extension of the tender validity period for 30 days. According to insiders, the company directors were in underground moves to influence the tender in their favour fearing being knocked out on various technicalities including suspicious bank bid bond and wanting bank statements. The firm bank signatories kept on varying. It is on these grounds that the invitation of Rhombus by KPA to participate in a competitive tendering process flopped. More surprising was the decision by PPRAB on September 7 2020 on application no 119/2020 by Rhombus where the board issued orders that the procuring entity’s letter of notification of cancellation was null and void and that KPA should proceed with the procurement to its logical conclusion within 14 days and that since the subject procurement process had not been concluded, each party was to bear its own costs in the request for review. Weekly Citizen has established, those at PPRAB handling the matter were compromised to favour Rhombus.
Fang Shiyong
The PPARB was represented by Faith Waigwa – chairperson, Phyllis Chepkemboi – member and Joseph Gitari – member. But since the decision by PPRAB was suspect, on September 22 2020 KPA sent to Rhombus a letter addressed to Ferrari SPA notifying of the termination of the tender. There was another correspondence on September 23 and 24 2020 between Rhombus and KPA over who should be addressed in the case of terminating the contract. On October 2 2020, Rhombus again made an application no 131/2020 to PPRAB for review of KPA’s decision. PPRAB made yet another decision on October 23 2020 directing KPA accounting officer to comply with the orders of the board issued earlier. The board also directed KPA to extend the tender validity period for 30 days and bear the request for review amounting to Sh305,000 to be paid to Rhombus. To complicate matters worse, during the validity extension as had been requested by Rhombus that was to expire on December 17 2020, KPA invited Rhombus to participate in competitive negotiations by submitting its best and final offer on or before November 12 2020.A stranger firm Cargotec, which Rhombus was using to quote higher, emerged from nowhere. Weekly Citizen has information, Rhombus brought on board Cargotec just as a formality. Rhombus submitted their offer of $4,062,876 while Cargotec submitted $5,068,972. As if that was not all, on December 15 2020 Rhombus through application no 150/2020 wanted PPRAB not to conclude the procurement process as the tender validity period was lapsing. As if the Rhombus word was final to PPRAB, the board again made a decision in favour of the company by directing KPA to furnish it with a status report on compliance with the orders issued earlier within 21 days and said the procuring entity was ordered to pay costs for request review amounting to Sh255,000 within 14 days. After going round in circles and PPRAB showing open bias in the dispute, KPA went to Mombasa High Court to seek a legal redress against the board, which is tasked with reviewing, hearing and determining tendering and asset disposal disputes. On January 21 2021 KPA applied for Judicial Review (marked RCCL 21) for oders of certiorari against the decision of the PPARD dated January 6 2021 in respect of application 150/2020. Mombasa High Court judge Erick Ogola granted the order to allow KPA to move the court to quash the entire decision and order of the PPARB made to Rhombus.
Faith Waigwa
The judicial review operates as a stay and orders issued pending the hearing and determination of the substantive application. The faces behind Rhombus in Kenya with underground China link are well known. They are engaged in money laundering, tax evasion dropping powerful State House operatives and top ministry officials. They are blaming Kalmar Reach Stacker directors for the current controversy with word, Chinese embassy in Kenya has started investigating business deals of Sany equipment with roots in China dealing with Rhombus. According to Chinese laws, any firm that engages in dubious international investments is blacklisted and directors jailed. Rhombus Construction is associated with Evans Githinji who is chief executive officer and Bernard Kairu, the managing director and a one Caroline Githinji associated with Sany, a Chinese firm. Rhombus is a local company based in Nairobi but involved in multimillions tenders which once it lands it brings on board Sany, thanks to Caroline’s position as Sny MD. She oversees the day-to-day management of the business and Fang Shiyong is Sany sales and marketing manager. The Chinese national is the Sany representative in Kenya overseeing heavy machinery dealership. For long time, the two firms have been on the radar for money laundering and tax evasion as well as dumping of second hand equipment
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