The Ethics and Anti-Corruption Commission (EACC) is investigating a complaint against the Office of the President over alleged procurement irregularities in the Sh1.4 billion overhaul of three MI-17 police helicopters that have had poor safety records.
It is among security-related contracts worth billions of shillings that also include the purchase of armoured personnel carriers, pistols, guns and body armour that are shrouded in secrecy because of their sensitive nature. But the international tender for police choppers, which was advertised by the Office of the Inspector General on March 20, 2015, has sparked controversy because it was cancelled three days prior to the closing date.
After the cancellation, authorities then reportedly awarded the contract to a company in the Czech Republic - Lompraha - under unclear circumstances. One of the arms dealers and manufacturer of the choppers, Russian firm SPARC, ZAO, wrote to EACC on August 25, 2015 alleging serious corruption at the Office of the President in the procurement of police helicopters and overhaul of MI-17 helicopters.
EACC has been asked to investigate the cancellation of tender for the overhaul of three MI-17 helicopters and another for supply of new turning turbine engine helicopters and one troop carrier helicopter.
"The tenders were cancelled three days prior to the closing date of April 28. We only learnt later that the cancellations were suspect because they secretly limited the so-called manufacturers in breach of the law. We also suspect that there were other purchases done in June for police equipment, which are in breach of procurement laws," wrote Elatt Limited Managing Director Wesley Kipkore on behalf of Sparc Zao and Rosoboronet Export.
Yesterday, EACC Deputy Chief Executive Officer Michael Mubea confirmed EACC was probing the matter.
"We have received the complaint and are still looking at it. The matter is still in the preliminary stages of investigation," Mr Mubea told The Standard.
It also emerged that the Ministry of Interior has been summoned by the National Assembly's Public Accounts Committee (PAC) to explain the matter on October 28. Yesterday, PAC Chairman Nicholas Gumbo could not be reached to comment about the matter. But in an earlier interview on the issue, Mr Gumbo had told The Standard: "We have received complaints from the public about the nature in which the security contracts were awarded and whether taxpayers are getting value for their money. Some individuals and firms have also given us supporting documents."
Cartels blamed
The Interior Ministry declined to disclose to The Standard the amount of money that will be spent for the overhaul of the helicopters and the top companies that bid for the lucrative tenders. Sources say however, that the overhaul will cost about Sh450 million per chopper.
Interior Cabinet Secretary Joseph Nkaissery has blamed cartels in security contracts for fighting back after losing business.
The Mi-17(Mi-8MTV-1) helicopter is a medium lift utility helicopter used for relocating personnel and equipment, especially to far-off and inaccessible areas. The National Police Service had on March 20 invited sealed tenders from manufacturers or their certified and approved overhaul facilities for Mi-17 helicopters.
"The Airwing in its inventory has three serviceable MI-17 (Mi-8MTV-1) helicopters, which are due for overhaul after completion of lifespan since the last overhaul. The fourth MI-17(Mi-8MTV-1) crashed in May 2009 and was assessed to be beyond economical repair," the tender notice stated.
It crashed just two years after the last overhaul in 2007 that was also mired in controversy. Then the tender for the overhaul of four Mi-17 helicopters went to one firm that quoted Sh1.2 billion although the lowest bidder had quoted Sh900 million.
Whether an overhaul was done on the helicopters remains shrouded in secrecy. Officers at the Kenya Police Air Wing declined to comment on the issue. "The tender was awarded, but maintenance was never done for the choppers. If they did an overhaul, then the choppers could have flown without mechanical problems for 2,500 hours or eight years, or whichever came first," an engineer at the police air wing said in confidence.
Saitoti's death
One of the passengers died while receiving treatment in hospital in May 2009 when the Russian-made police chopper crashed in Kapsabet. Survivors of the crash included the then Police Commissioner Hussein Ali and Assistant Minister for Internal Security Orwa Ojode, who died in another police chopper crash in June 2010 alongside his boss George Saitoti. "It's interesting that the chopper went down immediately after coming from an overhaul. We are not sure if the overhaul actually took place or what transpired when the aircraft was away," said a senior police officer well-versed with the choppers. One of the reasons blamed for the accident was that the chopper's engine had no compression.
After the first Mi-17 went down in 2009, in less than three years, the rest had started developing mechanical problems even before the expiry of the overhaul hours or years.
By late 2013, all the eight police helicopters were grounded, with three of them requiring a total overhaul.
As a result, in February 2014, the then IG David Kimaiyo advertised for a tender for the supply of one new helicopter and the overhaul of the Mi-17s. Meanwhile in the same year, the National Police Airwing bought a main rotor system comprising five blades for one of the serviceable MI-17 helicopters, registration 5Y-EDM, at a cost Sh13 million.
Interestingly, the rotor system had only two flight hours left, meaning that it would have expired in a round trip from Nairobi to Mombasa.
The new tender was given to Helisota, a Lithuanian company. However, it was also cancelled despite being awarded without any reasons being given. A new tender was floated in March 2015. The first tender was for the purchase of new helicopters including four utility helicopters and one troop carrier. The other tender was for the overhaul of the three Mi-17 helicopters.
The two tenders were to close on April 14 at 10 am. However, interested firms complained that the period given was too short. Subsequently, the tender was extended by another two weeks. Before the expiry of the extension, on Wednesday April 22, an advertisement was placed in the newspapers cancelling the two tenders.
By this time, dozens of bidders had purchased bid bonds ready for submissions ranging from Sh27 million upwards. No reason was given for the cancellation. Around June, some of the firms that had purchased the bonds discovered that although the Government had cancelled the tender, some of its officials had gone ahead to negotiate with some of the firms.
They wrote protest letters to the Interior ministry and police headquarters. The firms are yet to receive replies.
Instead, the firms were informed that the tender had been given to Lompraha, a Czech company.
Further, the Ministry of Interior went on to obtain a troop carrier from Italy. No explanation was given for the sudden change of heart.
Security experts have also questioned the decision to service Kenya Air Force aircraft and those of Kenya Army's 40 Air Calvary Battalion in Belarus instead of facilities manned by the manufacturers or manufacturers' recommended agents.
