The awarding of Ksh157 million contract for supply of murram for use in rehabilitation of Nairobi-Nanyuki Railway to two firms has raised eyebrows to the Ethics and Anti-Corruption Commission (EACC).
The anti-corruption sleuths are seeking to establish how the Kenya Railways (KR) went against the procurement rules resorting to restricted tendering to pick suppliers for the materials.
According to an EACC report, the law allows restricted tendering for material not exceeding Sh30 million but in this case, Kenya Railways spent Sh157.2 million for the five contracts.
According to investigations by the EACC anti-graft state that some of the contracts were backdated in the deals.
“The contract was signed on 4th May, 2020 and backdated to commence on 31st March 2020. Therefore the time spent between invitation to tender and signing of the contract was two months which was adequate to conduct procurement within the allowed methods of open national tender and per the threshold matrix,” the EACC report reveals.
M/S Mosrach Ltd signed Sh34.5 million contracts for the Narumoru Railway station on 15th April 2020 and backdated to commence on 31st March 200. The delivery note indicates that work started before the contract was signed.
M/S Mosrach Ltd second contract of Sh34.5 million for the Nanyuki Railways Station was signed on the 15th April 2020 and backdated to commence on 31st March 2020.
First Choice General Suppliers Ltd’s three contracts for Mitubiri Railway Station, Makuyu Railway Station and Kiganjo Railway Station each at Sh29, 250,000.00 were signed on the 4th of May 2020 but backdated to commence on 31st March 2020.
‘Delivery note No. 4 and 22 dated 4th April 2020 and 233rd April 2020 respectively indicated that work started before the contract was signed. The management was therefore in breach of law,” the report concludes.
According to EACC, Kenya Railways sent invitations to 12 firms but only two were picked and awarded the contracts that were split into five.
The 12 firms that tendered their applications included Neral Holdings Ltd, Wilfak Engineering Ltd, Tradecoin Enterprise Co. Ltd, Bismura General Merchants Ltd, Zescon Construction Ltd, Apotch Technologies Ltd, Pinnie Innovation Ltd, Gilberson Trading Co. Ltd, Mosrach Ltd, Pkarizus Investment, Young Entrepreneur Aiming Hinger Ltd and First Choice General Suppliers Ltd.
First Choice General Suppliers Ltd was awarded a contract of murram supply of Sh88,200,000.00 for the tender documents issued on February 21, 2020 with the evaluation conducted on 10th March 2020.
The Kenyaonlinenews.com, tried to reach the Kenya Railway Managing Director Philip Mainga for a comment but did not yield any fruits.