EACC orders Kilifi Government to stop Sh103 million tender payment over irregularities

The Ethics and Anti-Corruption Commission (EACC) CEO Twalib Mbarak. [File, Standard]

The Ethics and Anti Corruption Commission (EACC) has ordered Kilifi Governor Gideon Mung'aro to suspend the payment of Sh103 million to a company tendered to design and integrate revenue collection.

According to a letter by the anti-grant agency to the governor, the company does not have the experience to undertake revenue management and collection.

Additionally, EACC says it is investigating allegations of procurement irregularities by the Kilifi County Government.

"Pending conclusion of investigations, we advise that you suspend implementation of the contract and the payment of the sum of Kshs. 103, 797,361.70 purportedly being in respect of purchase of the system," reads the letter in part.

EACC further warns that the County Government of Kilifi will be solely responsible in the event funds are lost.

"We shall hold each and every person involved personally responsible and take appropriate criminal and/or civil action," added EACC.

Investigations by EACC disclose that the successful bidder for the tender, Aden Construction Company Ltd, did not have the capacity to undertake the revenue collection.

"In support of its bid, it (Aden Construction Company Ltd) annexed documents belonging to a third party, a firm by the name M/s Techbiz Limited. However, it is critical to note that Techbiz is not a party to the agreement and the competency of the successful bidder must be based on its own merit and not those of a third party,"

EACC further noted that there was no meaningful negotiation on revenue sharing and the agreed percentage of 25 per cent is exorbitant.

"It is further noteworthy that the said company is currently providing similar service to the County Government of Mombasa and the agreed rate of sharing is only 5 per cent," said EACC.