A Sh23 million tender awarded to a revenue collection company in Nairobi City County is under investigation.
The county's Finance Department is being probed with regards to the tender won by Web Tribe Company, whose quote was higher than two others.
A report by the County Assembly's Public Accounts Committee (PAC) raised queries on how the tender was awarded to the electronic revenue collection company.
"It is not clear why the county failed to contract the lowest bidder and instead gave it to a company that would retain almost half of the revenue collected in the county," stated the report.
The committee led by Robert Mbatia said the county executive engaged the company at 4.5 per cent operational costs compared to Virtual Mobile and Craft Silicon, which would have taken 2.5 per cent as their fees.
They said this would cost the county an extra Sh767.4 million in five years (2013-2017) than it would have incurred if it contracted the other bidders.
The MCAs also took issue with the tender committee, citing that the majority of members did not belong to the ICT Department.
Only three of the seven members were from ICT hence "undue influence" in the awarding of the contract.
The queries were brought to the fore by the Auditor General after it emerged that the company had decided on an extra 1.5 per cent above the signed contract.
