Sabatia lawmaker caught up in Sh640 million tender row
A new row has emerged at the National Treasury following the award of a Sh647 million tender to a firm associated with Sabatia MP Alfred Agoi.
The revelation comes after a bidder moved to the High Court seeking to nullify the technology tender for servicing the Integrated Financial Management System (IFMIS).
The High Court has since temporarily suspended the award to a consortium led by Kingsway Business Systems following a case filed by a rival firm, ADK Technologies citing fraud in the tendering process.
ADK argues that its rival did not meet the technical specification for the IT deal claiming the firm was specialised in insurance services and not ICT products.
According to records at Treasury, Kingsway Business Systems Limited listed directors include Simeon Ogendo, Seth Asuza Changilwa, Alfred Agoi Masadia and Beatrice Kosgei.
ADK through lawyer Duncan Kiprono wants the High Court to compel the Public Procurement Administrative Review Board (PPARB) to review the case afresh after the tribunal dismissed it last month.
He has listed PPARB as respondent while the PS National Treasury and Kingsways Business solutions are listed as interested parties.
Treasury had invited eligible bidders to bid for Tender No. TNT/049/2019-2020 for Provision of Onsite Support for IFMIS Applications, Enhancement of IFMIS E-Procurement and Independent Integrated Financial Management Information System for Semi-Autonomous Government Agency (SAGA) through an advertisement published on June 16, 2020.
Five bidders applied for the tender by close of deadline; M/s Sybyl Kenya Limited, M/s Kingsway Business Systems Limited in Consortium with M/s Kobby, Technoloqies Ltd and M/s Inplenion Eastern Africa Limited, M/s Next Technologies, M/s Ubora Systems and Solutions in consortium with M/s Tech Mahindra and M/s Transnational Computer Technology in consortium with ADK - Technologies
Kingsway led consortium was the least evaluated at Sh647, 064,000.00, Next Technologies Sh651,102,609.48 and ADK led consortium Sh898, 948,256.00
On January 25, 2021, Treasury PS Julius Muia notified bidders that a consortium headed by Kingsway Business Systems Limited were successful for the deal.
However M/S ADK Technologies Limited lodged a request for review on February 8, 2021 at the Public Procurement Administrative Review Board (PPARB) citing fraud.
The Faith Waigwa-led board dismissed the request for review on grounds that the application was not properly filed before the Board as there was no evidence provided of authorisation for one Samuel Haile Nigussie to appeal the decision.
Dissatisfied, ADK Technologies moved to the High Court seeking a judicial review of the PPARB decision and also stop Treasury from signing the contract until the case is heard and determined.
On March 6, 2021, Justice Jairus Ngaah issued an order temporarily stopping the Treasury from awarding the contract.
According to suit papers, ADK claims that Kingsway Business Systems Limited has been providing to the National Treasury for the last 10 years Group Personal Accident services but not IT services.
ADK claims that in March 2020, Kingsway purchased an entry level partnership from Oracle in what appears to be credential acquisitions in preparation for the tender.
ADK’s Project Manager Nigussie says: “I verily believe that procuring entity might have engaged in a flawed procurement process and acted against the laid down laws and procedures, to tilt the scales to enable them carry out a sham procurement process and act in breach of the provisions of law in order to favor Kingsway business solutions.”