Blacklisted Firm Gets Sh2.7b Contract

News

Ntonyiri MP Maoka Maore (Kanu) said the Government has awarded a contract worth Sh 2.7 billion to a company which was blacklisted in Kenya six years ago.

Maore claimed that Anglo Leasing and Financing Company from Liverpool was blacklisted after supplying defective Mahindra vehicles to the former Kanu government.

He said the firm has, however, won a tender to supply immigration security and documents control equipment. The MP said the Government had paid three per cent (Sh 91,678,169) as a commitment fee of the total project cost

Maore , who tabled documents to support his claims, said because of the risk involved, suppliy officers at the Ministry of Home Affairs were demanding kick backs of between 40-50 per cent.

Maore said the Tender 1/IMM/2002 was opened on November 28, 2002, but was executed during the Narc administration. Attempts by Roads and Public Works Minister Raila Odinga to defend the Government were thwarted when it emerged that the deal was sealed last year.

Raila, however, assured the House that they were going to investigate the matter now that it had come to the Government’s attention. Maore said the companies which had quoted lower figures were not considered and that the accounting officer "sat on their bids only to sneak in Anglo Leasing Company which had been black listed".

The companies which made bids were: Face Technologies of South Africa (US $9 million), GET Group of USA (US $ 10 million) and De La Rue of United Kingdom which bid US $ 7 million.

Maore said although Anglo Leasing quoted US $12 million, the figure was inflated to US $ 34 million. He said the Government lost US $ 22 million through unscrupulous supplies officers.

Maore asked the Permanent Secretary in charge of Governance and Ethics to do an inventory of the suppliers as from the date Narc came to power. Maore was contributing on Government Financial Management Bill.

Meanwhile, Trade and Industry Minister Mukhisa Kituyi is to table a Ministerial Statement today explaining what exactly the East African Customs Union Protocol entails. He is expected to take Parliament through the gains and losses Kenya is to expect as a result of acceding to the dictates of the protocol that is scheduled for Parliament’s ratification.

Yesterday, Deputy Speaker David Musila directed Dr Kituyi to treat the matter as one of utmost importance to the country. It followed MPs concerns that the country was about to be a signatory to to the rules on trade whose real benefits and were yet to be made clear.

Mukurweini MP Mutahi Kagwe (Narc) sought to know from the Minister the financial implications of the protocol to Kenya. "There are serious financial issues that we need to know. Is the country losing revenue for instance? How does it affect Common Market for Eastern and Southern Africa (Comesa) considering Tanzania actually belongs to a different trading bloc?" Kagwe asked.

Although a member of the East African Community which is essentially a trading concern, Tanzania, unlike Kenya and Uganda is a member of the Southern African Development Co-operation (SADC) while the latter two belong two Comesa.

Kagwe, who also sought to know the how the protocol would specifically affect Comesa operations was unhappy with the "shallow" answer given by Trade Assistant Minister Petkay Miriti.