The Kenya Ports Authority spent Sh137 million on bottled office water without following procurement procedures, attracting the attention of the Ethics and Anti-Corruption Commission (EACC) officers who want directors of six firms involved in the scam charged in court.
EACC has completed investigations into the alleged irregular and fraudulent payments and forwarded the report to the Director of Public Prosecution (DPP) for action.
“On 7th September 2021, a report was compiled and forwarded to the DPP with recommendations to charge officials of KPA, Mombasa fresh water supply Company, Pincho Traders, Smech Enterprises, Nyavu Traders, Aquisana Limited and all their Directors,” reads the EACC 3rd Quarterly Report Covering the Period from 1st July, 2021 to 30th September this year.
The EACC says that the inquiry proved the allegations of irregular and fraudulent payments made by KPA to the six firms in the 20I7/20I8 Financial Year, leading to a loss of Sh137.6 million.
The Commission initiated investigations following a complaint received on 19th September, 2018 indicating that during the financial year, KPA had unlawfully procured fresh water from six firms without following the procurement procedures.
Further investigations established that some of the suppliers were paid for goods not delivered.
Fraudulent payments
On 7th September 2021, a report was compiled and forwarded to the DPP with recommendations to charge KPA officials and directors of the six companies with different counts.
Some of the offences EACC has recommended include six counts of deceiving principal contrary to section 41(2), 12 counts of abuse of office and 10 counts of willful failure to comply with the applicable law, regulations and guidelines relating to procurement.
The directors and officials also face four counts of fraudulent acquisition of public property and one count of willful failure to perform official duty.
The EACC report is dated November 23 2021 and signed by Archbishop Eliud Wabukala and CEO Twalib Mbarak. It was gazette on December 3rd.
The Commission also approved the prosecution of M/S Alootek System Limited for inflating the cost of two Copco compressors it procured on behalf of KPA, leading to the loss of Sh8.4 million.
EACC faults KPA in respect to the award of tender for the supply and maintenance of two Copco Compressors to Alootek Systems Limited at a cost of Sh8.4 million, which was beyond the allocated Sh8 million budget.
Procurement process
Investigations established that in the 2017-2018 procurement plan, KPA had allocated Sh8 million for the two compressors, one being fixed and the other mobile.
Before the procurement process commenced, Alootek Systems Ltd wrote to KPA requesting to be considered for the supply of compressors, generators, demolition equipment, light towers and compaction equipment.
Investigations revealed that officials of KPA agreed to the request and recommended that Alootek be contracted for the supply of Atlas Copco Compressors.
No procurement was done to allow other competent firms to bid for the tender. Further investigations established that officials of Alootek Systems Ltd presented to KPA that they were the sole distributors of Atlas Copco equipment in Kenya, so as to influence the tender award to their company.
EACC is required under section 36 of the Anti-Corruption and Economic Crimes Act,2003 (ACECA) to prepare quarterly reports setting out the number of reports made to the DPP.
The quarterly report indicates if a recommendation of the Commission to prosecute any person for corruption or economic crime was accepted or not accepted. BY DAILY NATION
There's no story that cannot be told. We cover the stories that others don't want to be told, we bring you all the news you need. If you have tips, exposes or any story you need to be told bluntly and all queries write to us [email protected] also find us on Telegram
