The Public Investment Committee on Commercial Affairs and Energy has questioned the abrupt cancellation of a Ksh344.5 million tender before its execution.
According to a report from the committee, the Geothermal Development Company’s (GDC) cancelled the tender after awarding it to an international company.
Further, the unnamed international company had already completed the first phase of the project and had been paid Ksh59.4 million in 2015.
However, the project stalled and was never completed.
Also Read: Former Prison Boss Face Jail Term Over Ksh302M Tender Scandal
Company MD Defends Company
While issuing a response, Paul Ngugi, GDC’s Managing Director, said that the contract was initiated in 2014 for the installation and commissioning of an information and fuel management system.
In addition, he said that the contract was eventually canceled following an investigation by the Ethics and Anti-Corruption Commission (EACC) into the procurement process.
“Ngugi’s explanation prompted sharp reactions from committee members, who questioned the justification for revoking the contract, especially considering that part of the payment had already been made,” part of the committee’s report read in part.
Also, Ngugi revealed that out of the Ksh59.4 million paid to the international contractor for completing the first phase of the project, the company received value for only ksh15 million.
“EACC has no power to stop or suspend a procurement process or a project. It’s only a court of law or Parliament that has those powers. Why did you suspend it?” questioned the committee.
The MD said that was difficult to proceed with the project after the EACC began scrutinizing the procurement and contract documents.
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Ex Accountant Charged in Tender Scandal
In a separate incident on August 13, former accountant at the State Department for Correctional Services, Humphrey Wende Abok, was charged in connection with a Ksh302 million prison tender scandal.
Wende and his associates were accused of defrauding the State Department by receiving payments for goods that were never supplied.
According to the prosecution, between July 1, 2014, and March 29, 2018, Wende and his co-defendants fraudulently obtained Ksh 301,908,000 intended for undelivered goods.
Wende also faced eight counts of abuse of office under Section 46, as read with Section 48 of the Anti-Corruption and Economic Crimes Act, No. 3 of 2003.
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