Kiambu irregularly awarded Sh200m Covid-19 tenders

Kiambu Governor James Nyoro is in the eye of a storm following revelations that his administration irregularly awarded Covid-19 tenders worth over Sh200 million.

An investigation by the county assembly’s health services committee shows that the executive violated procurement law when it single-sourced suppliers to avoid competitive bidding. It also awarded lucrative tenders without a budget, contrary to the Public Procurement and Asset Disposal Act, 2015.

The report also criticises preferential payment of suppliers with some being paid the full amount promptly while others are yet receive a dime for deliveries a year later.

It points at the “unlawful application of public funds in the direct award” to BOC Kenya of a Sh49, 010,770 contract for the supply of bulk oxygen and associated piping. This direct method, the report adds, contravenes the Act, which identifies open tendering as the most effective and efficient procurement system.

Noting alternative methods are allowed subject to fulfilment of the specified conditions under the Act, the ward reps have vowed to investigate the oxygen tender.

The report also flags a Sh61,084,950 contract for the proposed construction of an isolation centre at Ruiru to Koto Housing Kenya Limited through restricted tendering.

“It would have been more efficient, effective, economical, and equitable, not to commission a new project in light of all the stalled public hospitals projects in Githunguri, Lari, Bibirioni, Thogoto and a host of other incomplete and un-gazetted dispensaries and health centres. The matter is still under inquiry by the committee,” it states. 

It also criticises the health services department for commencing procurement processes without a budget.

It identifies the supply of non-pharmaceutical products worth Sh73, 447,260 and the proposed renovation of Tigoni Hospital by Johlive Builders at Sh22,958,890, which “were not backed up by the approved budget estimates”.

The report accuses the executive of selective payment of pending bills that totalled Sh452, 790,772 as of September 30 last year. For instance, the report notes that Brighton Pharmaceuticals was paid the entire Sh15, 174,100 for goods supplied between March and June last year by close of the 2019/2020 financial year in July.

However, another company, El Borte Investments – which had supplied goods worth Sh15, 135,000 over the same period – had not been paid anything by last November.

The ward reps claim there was a liberal use of imprests to cater for expenditure that would ordinarily and prudently be catered for under the prequalified suppliers’ framework agreements. They allege the issuance of imprests worth Sh6.2 million in one month was a ploy to circumvent procurement laws.

It has also emerged that there was poor management of Sh113 million funds and merchandise donated by well-wishers under the Kiambu Covid-19 Advisory Council.

The report also notes that there is lack of accountability for procured goods worth Sh38,565,900 and unnecessary and unclear provisions in the bills of quantities amounting to Sh11 million.

The ‘progress report of the sectoral committee on Health Services on the inquiry of the management of Covid-19 grant in Kiambu’ is before the House Business Committee. 

The findings come a few months after the Office of Auditor-General raised queries on how the county government had spent Sh19.5 million on airtime, Sh1.69 million in buying 11 phones and Sh1.1 million for lunch during last year’s Jamhuri Day Celebrations.

These concerns were contained in a confidential audit report of 2019/2021 dated December 31, 2020.

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