Plot to have Sidai replace Manduku as KPA boss – Weekly Citizen

Daniel Manduku

Powerful forces are determined to edge out Kenya Ports Authority managing director Daniel Manduku from the coveted position envied by many.
For now, several people are wondering if Manduku will survive with intense lobbying for his position now on.
Surprisingly as Manduku is being targeted, KPA recently remitted Sh18.7 billion to the treasury making it the top state owned entity in sending money to the government following a directive ordering state departments to surrender surplus cash.
KPA joined Kenya Pipeline Company which has returned Sh5 billion, and the Kenya Airports Authority that remitted Sh12 billion.
KPA had met the government directive and remitted Sh18.7 billion to the national treasury after getting a nod from the cabinet secretary of Transport James Macharia.
KPA had written a letter to the Transport ministry on November 12 requiring authorisation to remit cash to the treasury, a request that was given a nod.
Under the latest initiative, the Treasury has directed parastatals to stop redirecting surplus funds to projects before they get approvals.
This follows regulations published in 2018 that demand parastatals remit reasonable returns to shareholders. Regulators, on the other hand, are required to remit 90pc of their net surplus.
Uhuru Kenyatta ordered parastatals to surrender surplus cash to the Treasury, as the government looks for ways to finance its development projects and pay debts that have now gone through the ceiling.
The government is sourcing finances to start repaying the second batch of interest payments on the 2014 eurobond of Sh204 billion next month which might only add more pressure on the Treasury.
Kenya is also expected to start paying in January next year the principal amount for the Sh324 billion loan taken to construct phase one of the standard gauge railway, which will pile more pressure on Uhuru’s administration. The state-owned entities have in past years handed the Treasury meager dividends, with many claiming to plough back their surplus cash into different projects.
Back to tender wars, KPA is to undertake seven projects worth Sh21billion at the port of Mombasa. The tenders include Sh7 billion headquarters construction, a Sh3 billion terminal operating system, Sh3 billion purchase of land at the Nairobi Inland Container Depot and Sh2 billion for dredging. The said tenders were cancelled by Manduku, the genesis of his problems at the port.
Other cancelled deals were a Sh2 billion port equipment tender, supply of a tugboat at Sh1.7 billion and a Sh800 million pilot boat. Businessmen who had enjoyed an environment of monopoly at the port over the years were reportedly irked that Manduku had allowed competition for the multibillion tenders.

In the latest probe, the DCI has faulted the manner in which expenditure was allowed for the Makongeni Goodshed yard concrete works on Kitui Road off Enterprise Road, Industrial Area, Nairobi.
While the DCI says the yard belongs to Kenya Railways Corporation and that port management wasted millions of shillings on a property that does not belong to them, documents indicate that KRC leased the facility to KPA for 10 years commencing in August 2019.
“Further to your application to lease the above property, this is to inform you that the management has approved your request,” reads the letter signed by KRC acting managing director Philip Mainga.
Further, the Makongeni project was approved by the KPA board during a meeting on January 29, it has been pointed out.
“The facility was gazetted as a port in line with practice and policy. The requisite board approvals were all obtained,” Manduku who has been at the helm for 17 months told the media last week.
And even as Manduku is fighting to survive, those against him are already convinced that he will not be able to survive the current storm, with those after him having positioned themselves to plant their own at port’s helm.
They prefer the current KPA GM Infrastructure and Development Vincent Sidai, a former governor aspirant in Busia county who joined the port a few months ago to replace Manduku once hounded out of office.
Sidai was appointed after Alfred Masha who had acted in the post for many months was bypassed in-spite of being qualified. Masha is said to be among port managers who are fighting MD Manduku. He is bitter that the MD pushed for advertisement of the GM infrastructure post instead of confirming him.
It is said, a top ministry official in the name of principal secretary James Macharia pushed for Sidai appointment using well known wheeler dealers in the Jubilee government. Masha’s name also features among those likely to replace Manduku.
Abdullahi Samatar occupied the position but was edged out during a reorganisation exercise. Sidai contested for the Busia governor’s seat in the last general elections on a United Democratic Front party ticket and lost to Sospeter Ojaamong.
Some Coast politicians are also reported to be lobbying for a Coastal to succeed Manduku in case he is charged in court.
One Jira from Coast Water is also being brought in to take over as the procurement manager to replace Aza Dzengo. Former procurement manager Yobesh Oyaro, is also scheming on how to return at the port of Mombasa as GM finance.
He was transferred to Kisumu several months ago. Oyaro who has close ties with Mombasa tycoons has no time for Manduku. Both are from the Abagusii community. The name of Miriam Khamis, a one-time port principal security officer is also mentioned as a likely successor.
Those baying for Manduku’s blood are keenly following current investigations by DCI in the Sh2.7 billion tender scandal.
The probe implicates top officials at the authority with Manduku accused of authorising irregular expenditures totaling to Sh2.73 billion.
Manduku has since dismissed the allegations claiming they are being fronted by people interested in KPA tenders he cancelled.
In three projects including Makongeni Goodshed yard, manufacture of concrete barriers and Kisumu port revitalization, have come out in the public domain. An investigation file by the Economic and Commercial Crimes Unit states that Manduku oversaw the preparation of bills of quantity for eight firms without requisition forms from the user — the Inland Container Depot in Nairobi for the Makongeni Goodshed yard project.
Manduku, KPA general manager in charge of operations William Rutto, senior works officer Anthony Muhanji, works officer Juma Chigulu and principal works officer, Bernard Nyobange are accused of colluding to divide the 2,100 square meters yard belonging to Kenya Railways into 9 zones and awarded eight contractors the concrete works.
To DCI, the split was unprocedural with the aim of avoiding open and competitive tendering process and cost the taxpayer Sh506 million.
Investigations show that the firms were paid in full despite not completing the job, as Kenya Railways reclaimed its land and demolished the concrete structures.
In the Kisumu port revitalisation project Sh800 million was shared by seven firms with works projected to cost Sh100 million.
Investigators say a top official at KPA was pushing for the seven companies to be awarded the tenders.
Procurement regulations were breached to award the seven companies the tenders which DCI claims documents were forged to sanitise the process. Record from KPA finance department reveal that the firms that benefited are Ponoma Constructions Sh205 million, Ricco Contractors Sh108 million, while Sh129 million was paid to Associated Electricals, Yuaf Agencies got Sh163 million with Stone Contractors banking Sh128 million.
Tudor Engineering Limited was paid Sh35 million and Kites Technical Ltd Sh33 million, according to the investigations report.
The suspects in DCI report include Manduku, Mathews Amutu, who heads the port electrical works, project manager William Tenay, head of procurement Aza Dzengo, principal procurement officer Ali Mwinjaka, civil technician Tom Okeyo and directors of Stone Contractors.
It is said that KPA directed that Sh1.4 billion tender for the construction of 17,940 concrete barriers be awarded to 10 companies without following the procurement regulations. The said barriers are substandard and can cost less than Sh5,000, according to DCI report.
Two senior KPA officials have told investigators that there was no need for concrete barriers. Even then, the barriers were grossly overpriced from about Sh10,000 to Sh79,000 a piece.
Suspects in concrete barriers include Manduku, senior works officer Anthony Muhanji and works officer Juma Chilugu.