EACC probes Kebs over automobile inspection award of tender




A young for the pre-export inspection of used motor automobiles coming to Kenya is a profitable enterprise. At a minimal of $155 (Sh16,500) per automobile, the tender has through the years attracted fierce and soiled bidder wars, typically with the workers of Kenya Bureau of Requirements (Kebs) allegedly within the thick of it.

So, when Kebs on December 3, 2019 determined to extend the variety of corporations offering the Pre-Export Verification of Conformity (PVoC) of requirements providers for used motor automobiles, cell tools and spare components, it created a storm of controversy.

High quality Inspection Companies Japan (QISJ), which had been the only contractor for the almost Sh1.5 billion a 12 months tender, was aggrieved that new corporations have been being introduced on board when it had an ongoing contract that ends in April 2021 and quietly protested. Lawyer-Basic Paul Kihara cautioned Kebs that various current contracts, because it appeared to have been the case, might expose the bureau to large losses on account of litigation. Kebs’ personal legal professionals, Iseme Kamau and Maema Advocates, had suggested that it’s stopped for worry of exposing the requirements’ company to large prices.

In the meantime, the Public Investments Committee (PIC) of the Nationwide Meeting’s recommendation that Kebs ought to withhold awarding of the contracts for the expanded tender to EAA Firm Restricted and Auto-Terminal Japan (ATJ) till a particular audit of the 2 corporations the committee, was contemplating is over was ignored.

Amid all these have been a number of allegations of corruption within the enlargement of the tender to the ATJ and EAA. The temporary arrest on Thursday of Kebs managing director Lt Col (rtd) Bernard Njiraini over allegations of obstructing investigations by the Ethics and Anti-Corruption Fee (EACC) now threatens to show the choices and alleged under-the-table offers that went on within the award of the tender to ATJ and EAA.

Mr Njiraini was arrested on Thursday by EACC on accusation of irritating investigations by failing or refusing to adjust to orders to produce the company with authentic paperwork associated to the awards for tenders for the supply of pre-export conformity of products, used motor automobiles, cell tools and spare components, the fee stated in an announcement.


He has not been charged and EACC sources stated he was launched conditionally on the endeavor that he’ll henceforth adjust to the fee’s requests.

A glimpse into the allegations of corruption within the award of the PVOC tender for used motor automobiles, cell tools, and spare components are contained in a letter the Public Procurement Regulatory Authority (PPRA) wrote to KEBS on April 21, 2020, a few month after the contracts have been awarded, as a part of the investigation the Authority was endeavor. The letter, which has been offered as an investigation report, arose out of two complaints from an unnamed whistleblower and Niavana Businesses Ltd, who had unsuccessfully challenged the choice to award the expanded contracts earlier than the Public Procurement Administrative Overview Board (PPARB).

Nevertheless, EAA moved to courtroom to cease PPRA from continuing with the investigations on grounds that the identical points had been raised earlier than the Public Procurement Administrative Overview Board and have been additionally nonetheless the topic of Excessive Courtroom Judicial Overview Software No. 66 of 2020. Justice Pauline Nyamweya granted the keep order sought by EAA on April 30.

Within the contested preliminary investigation, a duplicate of which Sunday Nation has obtained, PPRA had famous a number of irregularities that Kebs was to reply to inside seven days.

For example, as per the standards set out by Kebs, all of the three corporations that submitted their bids weren’t responsive on the preliminary analysis stage. Three corporations had submitted bids, specifically ATJ, EAA, and Nippon Inspection Centre Ltd. For instance, ATJ, which was one of many two corporations ultimately awarded the contract, was discovered to have failed to satisfy the requirement to supply a duplicate of the certificates of incorporation. For its United Kingdom unit, the certificates of incorporation it offered confirmed that it offers in motorcar repairs, which amounted to a battle of curiosity given the character of works KEBS was searching for.

EAA, alternatively, amongst others, failed within the requirement for copies of related authorities licenses, a few of which have been discovered to have failed to adapt to the necessities.

Whereas Nippon Inspection Centre Ltd was dropped on the preliminary stage, EAA, and ATJ superior to the technical analysis stage regardless of the famous irregularities.

On the technical analysis, PPRA discovered that EAA and ATJ had once more been unresponsive after failing to supply all the knowledge concerning their presence and site to supply the required providers within the UK, Japan, UAE, Thailand, South Africa, and Singapore. In some situations, they failed to supply lease or tenancy agreements and in not less than one case, the lease settlement offered was unsigned.

On the monetary analysis stage, PPRA famous that opposite to the requirement that the shape for tender be accomplished, signed and stamped, each firms’ types weren’t stamped.

The Authority had additionally noticed that the procurement plan which KEBS relied on to obtain the providers was ready on January 2, 2020, a complete month after the invitation to tender. In line with PPRA, this was opposite to Part 69(2) which supplies {that a} procurement plan can’t be used retrospectively.

Furthermore, PPRA famous the plan utilized by KEBS had not been accredited by the Nationwide Requirements Council. “The procurement plan didn’t have an estimated worth and a sign of the price range out there and the sources of funding and the selection of procurement technique for the enlargement of the supply of pre-export verification Pre-Export Verification of Conformity (PVoC) to requirements for used motor automobiles, cell tools and spare components, as offered for in Part 53(10) of the Act as required by Rules 21(1f&g) of PPDR 2006,” PPRA acknowledged within the letter.

Different irregularities famous have been that KEBS didn’t embrace indicative or accredited budgets for the tender and that the method was completed with out a buy requisition as required by legislation.

“Taking cognisance of the above findings and observations, it’s within the opinion of the authority that the topic procurement didn’t meet the necessities set forth within the tender doc, Public Procurement and Asset Disposal Act, 2015, and the Rules issued below the repealed Public Procurement and Disposal Act 2005 pursuant to part 24 of the Interpretation and Basic Provisions Act,” PPRA acknowledged within the letter.

Kebs advised Sunday Nation that they’d responded to the letter and defined to the Authority the problems it had raised. The bureau, nevertheless, stated they may not share the response as it might not be in keeping with authorities procedures.

The tender can also be topic to not less than two different courtroom issues by Niavana Businesses and activist Okiya Omtatah.

For pre-export inspection providers, each EAA and ATJ cost $155 (Sh16,500) for each automobile coming from Japan, $225 (Sh24,000) for the UK and South Africa, $192 (Sh20,400) for UAE, and $250 (Sh26,600) for Thailand and Singapore. Of the quantities, KEBS will get $45 (Sh4,795) per automobile as administration charges paid month-to-month.

In line with a report by PIC, 91,179 motor automobiles have been imported to Kenya in 2019, up from 87,739 introduced into the nation in 2018. QISJ had been the only inspection company for KEBS between these years earlier than the sphere was expanded to incorporate EAA and ATJ.



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