KPA procurement process on EACC radar – Weekly Citizen

The Ethics and AntiCorruption Commission sleuths are reportedly compiling critical information on Kenya Ports Authority procurement operations with a view of prosecuting some cartels who have immersed themselves in outright corruption malpractices. This is after reports that several contracts for the provision of various services were being secretly extended after the lapse of their expiry period to bring them back on board without fresh competitive bidding after millions of shillings are said to have exchanged hands. Several civil works for painting have been procured directly and quoted under a special category in a move that raises eyebrows as this could be a window for one to reap from where he did not sow Sources point out that documents pertaining to underhand tender deals are usually destroyed or hidden from internal auditors to perpetuate the activities of those who are involved in corrupt activities within the port.

Eng Rashid Salim

The cartels in the port’s procurement department headed by Aza Dzengo have reportedly taken advantage of the fact that the authority’s procurement system is not embedded in the SAP system to commit economic crimes. Dzengo’s name has also featured prominently alongside that of acting port MD Rashid Salim, in the controversial Kipevu Oil Terminal tender investigations in which the cost of the project was allegedly inflated from the initial Sh15 billion to a whopping Sh40 billion and awarded to a Chinese company. The MD was the chairman of the tender committee. The government has since deployed experts from the Ministry of Transport to audit the project as part of ongoing investigations. Back to the rot at KPA’s procurement department, an audit and risk committee report presented to KPA board a month ago, revealed how billions of shillings not budgeted for were being spent on projects not on procurement plan. For instance, in the period between July 2018 to December 2019, LPOs issued under the repairs and maintenance totalled Sh12.9 billion out of which LPOs amounting to Sh8.6 billion was not projected in the procurement plan. Besides, 79 LPOs with a value of Sh4.24 billion could not be traced in the authority’s procurement plan. Procurement of items not in the procurement plan contravenes the PPDA Act 2015 cause 45(3)(a) which states” All procurement processed shall be within the approved budget”. As a result of a lack of adherence to the procurement laws by rent-seeking KPA officials, there have been budget overruns that were impacting negatively on the profitability of the port. A number of KPA directors are said to be some of the suppliers who have benefited from the lapses by procurement officials through proxy companies and as such their hands are reportedly tied and cannot support the implementation of harsh disciplinary action against culprits, it has been pointed out.