How KICC lost Sh1.4 billion through 15 unlawful bids

By Moses Nyamori | Sunday, Aug 26th 2018 at 20:48
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The management of a State corporation irregularly awarded contracts worth Sh1.4 billion during a conference in 2015.

Auditor General Edward Ouko has singled out then Kenyatta International Convention Centre (KICC) CEO Fred Simiyu (pictured) for awarding 15 contracts during the World Trade Organisation meeting in disregard of the Public Procurement Act.

Mr Ouko said Mr Simiyu single-sourced the firms while making reference to non-existent bids for tenders by fictitious companies, in total disregard of the KICC tender committee.

Simiyu was kicked out reportedly for his involvement in the procurement blunders on November 27, shortly before the conference in mid-December.

The Auditor General further said the KICC board of directors were direct involvement in the flawed procurement when they revised the cost of a tender for the design, supply and installation of a computerised conference management system.

In the report tabled in the National Assembly by Majority Leader Aden Duale, Mr Ouko said KICC's management procured goods and services worth millions of shillings without going a through a competitive process.

“Of the 17 projects that were implemented during the period, only five projects had invitation for bids to participate in tenders through restricted tendering method,” reads Ouko’s latest report for the year ended June 30, 2017.

Of the five, Ouko said, only two were considered by the tender committee. “The awards to the 15 different companies was done on diverse dates between July 13, 2015 and September 30, 2015 for a total sum of Sh1,432,333,345."

Further, the report reveals that a local company signed a contract worth Sh65 million even though it had not been issued with an award letter for the tender.

KICC has received claims amounting to Sh701 million from suppliers yet to be paid due to lack of documentation.

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