On Wednesday, July 8, 2020, the tender committee of The Nairobi Hospital (TNH), chaired by Dr Chris Bichage met with a team from the United Nations Office at Nairobi (UNON) to discuss the construction of a Covid-19 hospital.
UNON's Chief of Facilities Management, Mr Stephen Stannah, who could not make it to the meeting, was surprised to find out that the hospital was considering disqualifying the winning bidder, China Wu Yi Company.
In an email to the hospital’s management, Mr Stannah expressed his concerns that China Wu Yi Company faced disqualification on the basis that they were not technically compliant, owing to their 'pre-cast construction methodology’, which the UN agency would have preferred.
“I am very concerned about the feedback provided by Zahed, who did attend the UNON procurement. I understand the Tender Committee is considering disqualification of the winning bidder based on an assumption that their proposal is no longer considered technically compliant based on their 'pre-cast construction methodology,” said Mr Stannah.
He went on to say the precast construction methodology was the first preference of the Nairobi Hospital design team back in May as it would ensure minimal 'wet' concrete works. The technology, he went on to state, would also help ensure the tight timelines set for the project were met.
Mr Stannah was not amused that the second bidder, Quest Civil Engineers Ltd, was considered by the tender committee.
What Mr Stannah and the UNON team did not know is that the project’s quantity surveyor, Mr Daniel Kagacha, the Director of Linear Projects Ltd, had already written to Quest Civil Engineers Ltd 10 days earlier, advising him on what to do upon receiving the award letter.
“Copied below in this email is the contractor proposed for the Covid-19 hospital. I have so far advised him that he should ready himself so that when he gets the award letter he can move to the site immediately,” Mr Kagacha said in the email.
Mr Kagacha goes on to say he had shared with the would-be contractor the final drawings and lists the concerns raised to engineers Anthony, George and Chris as well as architect Edwin.
The Director of Quest Civil Engineers Ltd, Mr Yuehua Bai, responded on the same day (July 1, 2020), stating that he was appreciative of the chance to work on the Covid-19 facility.
What raises eyebrows is that the email from Mr Bai was written 10 days before the award letter was issued or a contract signed.
“This is Bai from Quest. I am very happy to get the chance to work together with all members of the consultants’ team. We are ready to cooperate with you. We are sure together with your professional and honourable consultants, we will deliver the job successfully,” he said.
Mr Bai had contracted Greneex Consultants Limited to represent them in the tendering process for the Covid-19 Hospital.
Quest was supposed to pay a total of Sh12 million to Greneex. However, documents obtained by the Daily Nation show they were paid only Sh5 million.
"That in the exchange for the services rendered and or to be rendered by the agent to the Principal, the Agent shall be paid a total of Sh12 million payable as hereunder. Sh5 Million upon successful award of the tender and payment by the client, Nairobi Hospital, of a 25 per cent deposit on the contract sum.
“Sh4 million after the settlement of the first payment certificate raised by the Principal to the client within the first week of the execution of the tender," the contract between Greenex Ltd Director Anthony Maina Njuguna and Yuehau Bai of Quest Civil Engineers read.
The contract stated the final sum of Sh3 million would be paid within the second week of the execution. This did not happen and a demand letter from Greenex Consultants shows only a portion of the money was paid.
The demand letter was written on behalf of Greenex Consultants by Mr Kimani Wachira of Wachira and Mumbi Advocates, who clarified that Greenex did not pursue the matter further.
The Sh1.1 billion coronavirus treatment facility, which was to offer preference to the UN agency’s workers and their families, was scheduled to be ready in eight weeks as per their agreement. Quest, however, did not deliver on this expectation.
Nairobi Hospital has in recent years been on a multibillion-shilling expansion spree that includes the construction of a 12-storey building, a convention centre with a 400-seat auditorium and one of the region’s biggest laundries.
The hospital makes more than Sh1.5 billion in annual profits, with sales exceeding Sh10 billion.
Dr Allan Pamba, who was the hospital’s chief executive at the time of the construction of the facility, links his removal from office to his opposition to the awarding of the tender to Quest Civil Engineering Limited in place of China Wu Yi, which had initially been recommended for the job by the hospital’s tender committee owing to its stronger technical capabilities.
“In view of the foregoing, the claimant (Dr Pamba) submits that the respondents’ conduct and his termination were unlawful and constitute a violation of the applicable provisions of the Employment Act, the International Labour Organisation Convention, the Nairobi Hospital Human Resource Manual on Probation and his employment contract,” a petition pending before the High Court says.
