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Construction firm fails to stop Sh2.5 bn affordable housing project in Nyeri
President William Ruto lays a foundation stone as he launches affordable housing project at Blue Valley area in Nyeri town on February 16, 2024. He was accompanied by his Deputy Rigathi Gachagua, Nyeri Governor Mutahi Kahiga and Nyeri Town MP Duncan Mathenge among other leaders.
A contractor’s bid to review a tender for the construction of Sh2.5 billion affordable housing project in Nyeri County has been dismissed by the procurement watchdog.
This is after the firm used confidential documents to challenge the rejection of its bid.
Public Procurement Administrative Review Board dismissed the application by Blueswift Contractors & General Supplies Ltd, saying the request for review was filed based on confidential information and documents which were illegally obtained, thus rendering it fatally defective and incompetent.
The review board further ordered the director-general of the Public Procurement Regulatory Authority to probe how confidential information came to the knowledge and possession of the firm and take action against the company.
Section 176(1)(f) of the Public Procurement and Asset Disposal Act criminalises disclosure of confidential documents and any person found culpable is subject to criminal and penal consequence including debarment for a period of 10 years and prohibition from working with a public entity or state organ for ten years.
“In view of the foregoing, it is evident that the Applicant (Blueswift Contractors & General Supplies Ltd) illegally obtained the confidential information and documents produced as exhibits and relied upon for purposes of filing the instant Request for Review…” said the board.
The contactor had challenged the rejection of its bid for the proposed construction of Naromoru Affordable Housing and Associated Social Infrastructure in Kieni East, Nyeri County.
Three firms submitted their tenders, including Blueswift Contractors & General Supplies, Refco HB Co Ltd and Led Power Technologies (EA) K Ltd.
Led Power Technologies (EA) K Ltd won the tender after being quoted as the lowest bidder at Sh2.499 billion.
Blueswift’s bid was rejected after officials from the Ministry of Housing and Urban Development conducted due diligence, which included ascertaining the firms’ experience and also confirming the completion status of one sample project of similar nature, complexity and magnitude done by the firm.
A report tabled before the board showed that the firm had delayed in executing similar projects awarded by the ministry, and that there were complaints of poor performance of the works.
Mr Zakariya Shariff Abdullahi, the director of the firm, argued that the ministry violated the constitution by rejecting its bid, yet it had complied with all the mandatory eligibility criteria outlined in the tender document.
He maintained that his firm was unfairly and unlawfully denied the tender and that the variance in terms of compliance with the previous tender was so meagre that it was unreasonable to disqualify it on that basis.
The board dismissed the request and directed the Ministry of Housing to proceed with the award of the tender to Led Power Technologies (EA) K ltd stating that the law prohibits a procuring entity, its officers, agents and or any person from disclosing any procurement information that would be against the public interest or prejudice the legitimate commercial interest of tenderers.
“Any such disclosure of procurement information is an offence attracting criminal sanctions in addition to debarment and prohibition from working for a government entity or where the government is a shareholder for a period of 10 years,” the board said.
