Firm ‘supplied NYS goods seven times market prices’

Companies

Firm ‘supplied NYS goods seven times market prices’

Sunday, April 12, 2020 21:59

By SAM KIPLAGAT

A firm that supplied goods to the National Youth Service (NYS) six years ago overpriced the products nearly seven times compared to the market prices.

Three firms, owned by a couple and a sister in-law, thereafter got Sh45.5 million for supplying general pipes, which were used for refabricated double-decker beds, for use by NYS recruits.

Ethics and Anti-Corruption Commission (EACC) wanted Catherine Nkirote who trades as Venyte suppliers & Joscate Sales and Supplies Ltd, her husband John Kago Murima and her sister Jane Makena, who trades as Q-setters Investments, to refund Sh37.7 million, which it claimed was overpaid to them.

The EACC through Jacky Kibogy said, for example, Q-setters supplied 5,000 cutting discs and quoted a price of Sh1,650, for each. The prevailing market price according to Ministry of Public Works then was Sh180 per unit.

EACC said the traders should refund Sh7.3 million, which they obtained from the price difference of Sh1,470.

Another item identified as round tube, the trader quoted Sh2,400 yet the market price was Sh840. The firm made Sh23.4 million after supplying 15,000 tubes. Also supplied was grinding discs 9’ supplied at a price of Sh1,950 instead of recommended price of Sh300.

The Judge, however said although the prices were above the market price, the burden of proving fraud or manipulation or even stage managing the tender process, lied with EACC.

“If they quoted the price the procuring entity felt was unreasonable, it was under obligation to accept the offer, proceed to award the contract at the price offered and pay,” Justice Onyiego said.

The EACC also accused the couple and their sister of private arrangement that Ms Makena’s company to bid but the goods were supplied by the couple. But the judge saw nothing wrong with the arrangement.

“In my view, this was a private arrangement to which NYS had no business to interfere with. As long as goods were supplied by the entity that won the contract, it was none of the procuring entity’s business to follow on the source of the money used to buy goods which were eventually supplied to them as per the contract,” the Judge said.

Justice Onyiego added that since the money paid to Q-setters was legitimately acquired after supply of goods in a legally awarded contract, nobody should question how the money was spent and who obtained how much and for what purpose.

EACC argued that the award of the tenders in 2014-2015 were irregular and sought a refund of Sh45.5 million. In the alternative, the anti-graft body asked the court to order the traders to refund Sh33.7 million, being the difference between the payments they received and the actual value of materials supplied.

The traders accounts were frozen in 2018 but the court dismissed the case saying EACC had failed to prove the case on a balance of probabilities.