Local contractor reveals hurdles in Sh5 billion NSSF tender

A contractor Thursday told a parliamentary committee how variations were made to a multi-billion-shilling tender to prevent local contractors from meeting minimum requirements and give Chinese firms an edge to clinch the deal.

The Managing Director of Cementers Limited Ramesh Vishram narrated to the Public Investment Committee (PIC) how a tender he had earlier won, was nullified by the Public Procurement Oversight Authority (PPOA), and reviewed on re-tendering to lock out local firms.

The contractor, who had earlier won the tender to construct a 28-storey Hazina Towers, told the committee that he was shocked to find that a re-advertisement done by the National Social Security Fund (NSSF) had varied the requirements, insisting on a contractor who could demonstrate capacity to construct two 40-storeyed building within five to seven years.

Vishram told the committee that he had won the initial tender to construct the building at a cost of slightly over Sh5 billion.

He said that after winning the tender, two Chinese firms objected to the award and took the matter to PPOA, which nullified the tender and ordered that the same be re-advertised.

Eldas MP Adan Keynan, who is PIC chairman, noted that it appeared the variations were tailor-made to lock out local contractors.

Vishram told the committee that this was not the first time he had seen local companies give tender conditions that deliberately locked out local contractors.

"A while ago, I wanted a particular contract at the airport until I realised that there was a condition that one must have experience of constructing at least two airports in the last 10 years," he told the committee.

Vishram said that while he had the chance to appeal the decision by PPOA, he decided against it after he lost a similar suit in the High Court.