The Ethics and Anti-Corruption Commission (EACC) has issued a directive halting the award of a Sh103 million tender for a digitised revenue collection system in Kilifi County.
In a letter to Governor Gideon Mung’aro, EACC Coast Regional Manager Ben Murei wants the tender awarded to Aden Construction Ltd suspended until investigations into claims of embezzlement of funds in the procurement process are complete.
According to the anti-graft agency, preliminary investigations have revealed that the company does not have the requisite capacity and experience to undertake revenue management and collection.
“Pending conclusion of investigations, we advise that you suspend implementation of the contract and the payment of Sh103.7 million purportedly being in respect of purchase of the system,” said Mr Murei.
The commission has notified the county government that, should it incur any losses, every person involved will be held accountable.
The culprits will face full force of the law, including criminal and civil charges, EACC said.
According to the EACC, Aden Construction Company Ltd relied on documents obtained from Techbiz Ltd, a third-party firm, to strengthen its bid for the lucrative tender.
Furthermore, the EACC noted that Techbiz is not a party to the agreement between the company and the county government, adding that the competency of the successful bidder must be based on its own merit and not those of a third party.
“More importantly, we note that there was no meaningful negotiation on revenue-sharing and the agreed percentage of 25 per cent is exorbitant and unconscionable,” said Mr Murei.
The commission has further noted that Techbiz is providing a similar service to the County Government of Mombasa and the agreed rate of revenue-sharing is only five per cent.
The agency has launched investigations into allegations of embezzlement of public funds and commission of procurement irregularities at the Kilifi County Government through the tender for proposal for design, supply, implementation, testing, commissioning, and maintenance of an integrated revenue collection and management system, as well as agency for revenue collection and management.
The tender reference numbers are KCG/FIN/RFP/1217959-1/2022/2023 and KCG/FIN/RFP/1217959-2/2022/2023 i.
The commission is investigating allegations that the tender is a scheme to misappropriate county funds through the purchase of the system and payment of exorbitant commissions for revenue collected.
