Shs 2.8b Scam Exposed The People Daily 27 April 2004 Page: 1
A Controversial India- based company known to have made a killing through multi- billion shilling contracts during the Kanu regime has clinched two single-sourced tenders worth Shs 2.8 billion, the People Daily has established.
The deal for the supply of finger printing machines and handcuffs was sealed early last month at Nairobis Riverside estate between a senior government official with mammoth influence and representatives of the Indian company from and its local representatives, sources disclosed.
Had the bid for the supply of the two items been advertised and contracted through open- tendering, the government would have spent Shs 720 million, thus saving a whopping Shs 1.2 billion. Strangely, the individuals behind the multi-billion shilling scam are also the proprietors of the company currently pushing a similar controversial Shs 2.7 billion passports project.
The firm, its owners and local representatives as well as local go-betweens and brokers, had deep connections at State House and Harambee House during the Kanu regime and have over the past one year successfully lobbied to be placed on the new governments list of multi-million shilling suppliers and contractors .
Authoritative government sources divulged to the People Daily Daily yesterday that the company had entered a deal with the government for the supply of handcuffs worth US$ 22 million (Shs I. 7billion) as well as the supply of finger printing machines estimated at US$ 15 million (Sh1.1 billion).
However, apart from the Tender being single -sourced, the Prices were grossly inflated with A view to "creating a reasonable potato " for the government official, his emissary and the company in question," the sources revealed. For instance, the sources said, the handcuffs tender would have cost US$ 6 million (Shs 486 million) but was inflated four times to US$ 22 million while the price of the finger printing machines, estimated at US$ 3 million (US$234 Million) to US$ 15 million.
The sources revealed that on The first weekend of last month, Three representatives of the Indian Company arrived at Jomo Kenyatta International Airport JKIA)where they were received By their local associates.
An emissary of the Influential senior government officials also present. They were treated to refreshments for one hour before being driven in a Mercedes Benz limousine to the plush Riverside residence where the deal was discussed and sealed. During the Riverside rendezvous, it was agreed in principle that the government would make a deposit of 30 percent on the handcuffs deal within 48 hours while a similar percentage, for the finger printing machines would be deposited within 72 hours.
Later the same day, the trio From India left for South Africa from where they were able to confirm receipt of both percentages three days later.