Sh47m NYS tender awarded before review, court told

Former National Youth Service Senior Deputy Director Adan Harakhe appears before the Public Accounts Committee (PAC) to answer questions of corruption allegations at the National Youth Service at Parliament Buildings Nairobi 28-09-16 PHOTO MOSES OMUSULA

The National Youth Service (NYS) awarded a multi-million-shilling tender even before the process was evaluated, a Nairobi court heard yesterday.

Documents filed by the Ethics and Anti-Corruption Commission show the Sh47 million contract awarded to Bluestar Enterprises Ltd was executed three days before the Devolution permanent secretary formed a tender evaluation committee, suggesting there was collusion to steal public funds.

"It was curious that the tender evaluation committee was appointed by the permanent secretary three days after the award, which raised doubt as to authenticity of the procurement process," said EACC investigating Officer Mark Ndiema.

According to the commission, NYS officials colluded with the company to inflate the cost of supplying specialised plant equipment and machinery, given that an evaluation done by the Ministry of Transport valued the same goods at Sh15 million.

The commission accused former NYS deputy director general Adan Harakhe of lying to court to stop his prosecution over the Sh47 million tender, and asked Lady Justice Hedwig Ong'udi to discharge the orders for him to face trial.

The commission submitted that Mr Harakhe was part of the team that awarded the controversial contract to Bluestar Enterprises Ltd and should be held accountable for his role.

"There is sufficient evidence that Harakhe participated in the scandalous tender. He has even admitted signing the local purchase order releasing the money to the company. He cannot turn and deny that he did not participate in awarding the tender," said Mr Ndiema.

Ndiema said Harakhe should use his claims to defend himself after being charged instead of trying to use the allegations to block his trial.

He said the decision to charge Harakhe was arrived at after careful review of the evidence collected, and factual foundation to protect public funds looted from the NYS.

EACC submitted further their probe revealed the procurement process was riddled with corruption, given that it was started even before funds were availed to pay for it.

Harakhe was to be charged alongside former Devolution PS Peter Mangiti with conspiracy to commit an economic crime.

He, however, obtained orders last week barring the Director of Public Prosecutions and EACC from arresting and prosecuting him over the scandal.

He denied any involvement in the Sh47 million contract.