Revealed - Scandal Of Sh2.7bn  
Daily Nation
21 April 2004

Page: 1

The Narc government was accused of corruption yesterday for overpaying an immigration security tender by about Sh1.7 billion .

Questions were raised in Parliament as to why, with the lowest tender for immigration security and documents control at about Sh936 million, the Narc administration offered instead to pay Sh2.7 billion. Details of the questionable deals in the Immigration Department, which is under the Home Affairs Ministry, were revealed by Mr Maoka Maore (Ntonyiri, Kanu).

He said: "In this deal, someone at the Immigration Department pocketed a whopping $22 million. Some people are now shy to talk about the present graft but are happy to talk about the past." According to a three-page document the MP tabled in the House, the Immigration Department was to be supplied with software, laminating machines and Kenyan passports.

The documents do not indicate which company won the tender. Mr Maore told MPs that despite receiving the lowest tender from suppliers, procurement officers in Immigration , held them until the last minute, only to turn around and support the highest bidder.

The Kanu MP offered documents showing how the tender was awarded irregularly and accused the Government of dwelling on alleged corruption which occurred during retired President Daniel arap Mois tenure while ignoring the looting going on in President Kibakis government.

He was contributing to debate on the Government financial management Bill 2004. In the payment voucher tabled by Mr Maore, Sh91.6 million was paid as three per cent commitment fee for the immigration and security documents tender deal.

A UK based firm, Anglo Leasing & Finance Limited of Alpha House, Liverpool, was awarded the tender to supply computer hardware and software, 300,000 passport documents and lamination films for passports.

It was not immediately clear who the local agents of the UK firm were. Planning and National Development minister, Prof Anyang Nyongo rose on a point of order to demand that Mr Maore tables the alleged payment voucher so that it could be verified.

The Ntonyiri MP complied and added that the Sh91.6 million was paid ion January 28, 2002. Mr Maore also demanded that the Permanent Secretary in charge of Ethics and Governance, Mr John Githongo, makes public an audit of the State coffers said to have been empty when Narc took over, and the current position.

Said the Kanu MP: "You will be shocked to find that suppliers are now demanding 40 to 50 per cent as commission (bribes), up from 10 per cent under Kanu, because of the high risk of influencing government officials."

The Ntonyiri MP also accused the Narc government of preaching water yet drinking wine by blacklisting contractors in public but dining with them and giving them business. "We demand that the Government takes every defaulter to court and not just those who were in the past regime," he said.

Contributing to the debate, Roads, Housing and Public Works minister Raila Odinga declined to comment on Mr Maore claims, saying the Government needed time to study the document. But Mr Odinga lamented that procurement and accounting officers had been using bureacracy to frustrate ministers by delaying funds for their ministries. He expressed hope that the new Bill would address the issue.

But two opposition MPs, Dr Bonaya Godana (North Horr, Kanu) and Mr Omingo Magara (South Mugirango, Ford People) supported Mr Maore and demanded that the Government clear the air on the passports scandal.

Dr Godana described as shocking information that an individual in the Government, whose election pledge was to fight corruption, had pocketed $22 million. "The public have a right to know how their taxes are used. We in providing services and goods, we are all very concerned about the fiscal transparency. Public watchdog organisations should be strengthened," the North Horr MP said.

Mr Magara, the chairman of the Public Investment Committee, said the Government should be run with private sector efficiency in order to operate at the least cost. The Ford People MP recalled that in the past, accounting and procurement officers had connived to earn millions at the expense of the public.

Mr Magara ran into trouble when he accused Attorney-genera Amos Wako of failing to appeal in court against cases where the government had lost millions of shillings in questionable contracts.

Mr Magara apologised and withdrew the remark. But he proposed that accounting officers and PSs be given three-year contracts under the new Bill in order to perform or be shown the door to ensure they are productive, professional and not corrupt.