E-Clips:- Business Pictorial - Auditor General's Report Punches Holes In Decision To Sign Deal

An Auditors report onof passport issuing equipment by the Department ofImmigration in the Office ofthe Vice-President and other relatedissueswas carried out from April 28,2004 to May 7,2004.

The report startswith background on the passportproject from June 2000when it wasinitiated by the Immigration Departpementto late 2002 when it was put onhold for lack of funds, It then goes tothe following year, after Narc came topower, when the project was revivedand Anglo Leasing came into the picture.

Excerpts:On August 1,2003, a firm by thenameAnglo Leasing & Finance Ltd ofAlpha House, 100 Upper ParliamentStreet, Liverpool L 19 AA, UK submitted to the Permanent Secretary,Office of the Vice-President and Ministryof Home Affairs what appears tobe an unsolicited technical proposal forsupply and installation of an Immigration Security and Document Con-trol System (ISDCS).

In its proposal,the firm indicated that it could supplyand install the System through its officially designated systems subcontractor in the name of Francois CharlesObethur Fiduciare of Paris, France.

The firm also submitted alongside theproposal, a proposed financing agreement explaining the contract andfinancing terms and conditions, Theoffer in the agreement proposed afacility of Euros 31,890,000 (Sh2,67billion) for the System, repayable at 5per cent (later changed to 4 per cent)perannum quarterly commencingthree months after the first payment,up to a period of 62 months.

It is not clear how the financing firmcould have prepared and submitted adetailed proposal for a project similarto the one recommended by Government Information Technology Service(GlTS) before a request to do so hadbeen officially made to it by the Governmentbut the indications are thatthe firm may have had fore-knowledgeof the recommendation to enhanceand expand the System.

Nevertheless, the Ministry acceptedthe proposal and in a letter dated September 5 2003, addressed to the PermanentSecretary, Treasury the Permanent Secretary, Office of theVice-President and Ministry of HomeAffairs sought for Treasury authorityfor direct procurement of the ISDCSwhich authority was granted by Treasury in a letter dated November 25,2000.