The Ethics and Anti-Corruption Commission (EACC) has issued a cautionary notice to Gideon Mung’aro, the Governor of Kilifi County, regarding a payment to M/S Aden Contractors Limited.
This is in connection with a tender for the creation an electronic integrated revenue management system for Kilifi county.
The caution letter, dated 23 October, 2023, highlighted potential procurement irregularities in the tender process.
Read more: Kenyan currency’s plunge: A double-edged sword for the economy
The Ethics body’s preliminary investigation revealed concerns over the capacity and experience of the successful bidder, Aden Construction Company Ltd, in creating and managing an electronic revenue system.
It also flagged the company’s submission of documents belonging to a third party, Techbiz Limited, as part of its bid.
“In support of its bid, it annexed documents belonging to a third party, a firm by the name M/s Techbiz Limited (hereinafter, ‘Techbiz). However, it is critical to note that Techbiz is not a party to the agreement and the competency of the successful bidder must be based on its own merit and not those of a third party,” Said the EACC in its statement
Additionally, the EACC raised questions about the lack of meaningful negotiations on revenue sharing, deeming the agreed percentage of 25% to be exorbitant and unconscionable.
Standing in contrast to Techbiz, which is providing similar services to the County Government of Mombasa, having an agreed sharing rate of only 5%.
Pending the conclusion of the EACC’s investigation, the Kilifi County Governor has been advised to suspend the implementation of the contract and the payment of KES 103 million which was intended for the purchase of the system.
It also warned that in the event of any financial loss to the County Government, individuals involved in the matter will be held personally responsible and may face appropriate criminal and/or civil actions.
Read more: China Square to open second store at Waterfront Karen
In a study done by the Ethics and Anti-Corruption Commission it estimated that Kenya loses approximately 7.8 percent of its GDP annually to corruption.
Email your news TIPS to editor@thesharpdaily.com
