Sunday, July 28, 2013

Shock of March poll kits supplied two weeks ago

Shock as firms deliver March 4 general poll materials four months late

Updated Saturday, July 27th 2013 at 20:55 GMT +3
By Kipchumba Some
ksome@standardmedia.co.ke
In a shocking revelation, materials meant for the March 4 General Election were supplied a couple of weeks ago, a whole four months after the polls concluded.
A company and a national agency contracted to supply lanterns and metal detectors curiously delivered the first batches of the equipment that was to cost Sh1.6 million too late.
Solarmak, a private company, delivered 3,000 lanterns two weeks ago, being the first batch of 28,000 the Independent Electoral and Boundaries Commission ( IEBC) had requisitioned for the elections, our investigations reveal. The tender was worth Sh105 million.
This week, the supplies unit of the Department of Public Works delivered to IEBC 5,000 metal detectors, being the first batch of 103,000 requisitioned for the polls. The tender was worth Sh1.5 billion.
Both deliveries come nearly five months after the historic polls concluded and are now the subject of investigations by the Ethics and Anti-Corruption Commission.
The two tenders highlight the broken procedures and requisition of costly but unnecessary materials and equipment that became the hallmark of IEBC’s tendering process in the run-up to the polls.
Documents in our possession indicate that Solarmak should not have won the tender to supply the lanterns in the first place; all the documents and certificates that accompanied their bid were found fake.
Hard Questions
The Certificate of Incorporation presented by Solarmak indicated the company was incorporated on August 2, 2008 whereas it was indeed registered on August 2, 2012.
“Despite purchasing the tender documents on October 9, 2012, the company was not registered in the tender register. This raises the possibility that the company might have bought the tender after the deadline and the receipt dated an earlier date,” reads an IEBC internal audit document.
The company presented a Tax Compliance Certificate issued on October 16, 2012 yet the company started existing in Kenya Revenue Authority database as from November 8, 2012.
In addition, the company’s financial statements for three years (2009-2011) were purportedly prepared by Ken Simiyu and Associates, an accounting firm not found in the Institute of Certified Public Accountants of Kenya ( ICPAK) database.
The company was to deliver the lanterns by February 28, but failed to do so, forcing IEBC to issue its own pressure lamps and gas lamps that were more expensive to use.
When the company delivered the lanterns on July 6,IEBC refused to take delivery and since then, a man behind the company has been threatening “consequences” to some IEBC staff.
Investigations by The Standard On Sunday indicate a man who claims to have paid Sh9 million to certainIEBC staff to win the tender is now demanding his money back.
Tender Process
EACC deputy CEO Michael Mabea could not speak on the specifics of the case but said investigations into corruption claims and flouting of the tendering process at IEBC would be complete in two weeks.
Parliament’s Public Accounts Committee is also carrying out investigations into the IEBC contracts and so is the National Audit Office.
The tender for the handheld metal detectors is intriguing in its execution and puzzling in the need for the items, which normally would be requisitioned by security agencies rather than an electoral body.
Documents in our possession indicate as late as March 1, just two days to the General Election, IEBCordered for the detectors even when it was apparent they might not be acquired in time for the polls.
On that day, IEBC Chief Electoral Officer James Oswago wrote to Mr Gideon Mulyungi, Permanent Secretary in Ministry of Public Works, to procure 34,000 metal detectors.
“Am pleased to inform you that Treasury has granted authority to incur additional expenditure of Sh750 million to procure metal detectors, which are in the universal kit,” wrote Mr Oswago.
“In view of the above, we are kindly requesting you to order the kits 34,000 ONO (or nearest offer) to meet our needs as we seek more funding from Treasury.”
Earlier, on February 1, Mr Oswago had written to Treasury PS Joseph Kinyua, asking for an additional Sh1.38 billion to prepare for the presidential re-run.
“In order to prepare adequately for the re-run, we deem it imperative to procure the materials, including ballot papers for the re-run now,” wrote Mr Oswago.
Among the things budgeted for were handheld metal detectors for Sh1 billion, fire extinguishers for Sh2,022,000 and first aid kits of unspecified quantity and cost.
He said in his letter to Mr Kinyua that the first aid kits had been requested by the Inspector-General of the National Police Service, Mr David Kimaiyo.
In his letter to Mr Kinyua, Mr Oswago indicated the Sh1.38 billion was needed to cover regular General Election materials such as ballot papers and pens.
But a breakdown of his proposed budget estimates indicate little money, if at all, would be left for other election materials other than the metal detectors and the fire extinguishers.
Our investigations indicate the number of detectors subsequently rose from 34,000 to 103,000 at Sh15,000 each. This brought the price of the gadgets to Sh1,545,000,000.
It is not yet clear why the number of the detectors were raised to such a high number that far outstrips the number of police officers in service today.
Informed sources said the Police Service gave specifications for the gadgets. The first batch of 5,000 was delivered to the Police Service this week.
However, the gadgets were returned to the Ministry of Lands, Housing and Urban Development where the Department of Public Works now falls, until IEBC pays for them.
One pertinent question arising from the purchase of the gadgets is: Why was the IEBC procuring security materials, which it did not need, even if they were for the Police?
The detectors were originally part of a polling kit that constituted of pencils, rubbers, rulers, embossers, reflective jackets, indelible ink, first aid kit and fire extinguishers, among other items.
IEBC’s procurement department recommended the items be sourced in bulk then assembled for the 34,000 polling stations, rather than buying them in full packages from a single supplier. The total cost of the items was put at Sh1.6 billion.
But apart from the essentials, the IEBC procurement division suggested metal detectors, first aid kits and fire extinguishers be left out.
However, when it came to sourcing of the materials, the Commission bypassed its own procurement division and approached the Supplies department of the Ministry of Public Works to deliver them.
On February 19, Mr Oswago wrote to Mr Mulyungi requesting supply of 34,000 universal poll kits, 2,513 medium-size first aid kits and an equal number of 5-kg fire extinguishers.
Double Procurement
But soon after, the Commission again approached its own procurement to purchase the same items, this time in kits, a suggestion deemed too expensive.
However, the procurement department declined arguing it would amount to double procurement since the order placed with the Ministry of Public Works had not been cancelled.
It was then that the Commission went ahead to procure the metal detectors from Public Works, even though the likelihood of them arriving in time for the polls was zero.
Mr Kimaiyo could not be reached for comment. Similarly, Internal Security Principal Secretary Mutea Iringo failed to reply to our requests for comment. We also learnt EACC, Parliament and the National Audit Office are investigating tenders relating to the acquisition of the Electronic Voter Identification Devices, the Biometric Voter Registration and the Results Transmission System.

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