Businessman sues county over Sh18bn waste management deal

As the country was immersed in debate over alleged questionable procurement deals by the national government, a senior Kisumu County official was committing residents to a Sh18 billion contract which is now the subject of a High Court case.

Last September County Finance executive officer Joseph Omulo Okal awarded a solid waste management contract to Madam R Enterprises, a deal that now pits the county government against businessman Erick Okeyo. 

Madam R Enterprises, a locally registered sole proprietorship, is claimed to be a corresponding arm of an unnamed German investor who will be engaged for 15 years at a cost of Sh1.2 billion a year to manage the county’s solid waste. Madam R Enterprises was registered as a business name and issued the number 471925 at the State Law Office in May 2007 by a Ms Renish Achieng Omullo.

“On behalf of the County Government of Kisumu, I am pleased to inform you that your bid has been accepted. Consequently, you are required to sign the contract award agreement form on or before 20th October 2013,” the notification of the award dated September 13, 2013 reads in part.

However, Mr Okeyo, in a High Court petition, claims the beneficiary of the tender is a sole proprietor, registered in 2007, and is not known in the waste management industry.

“The application is based on the petition and affidavit of Erick Okeyo, filed on grounds that the tender for waste management awarded to Madam R Enterprises of P.O. Box 15 Katito, was not floated, or any invitation advertised,” read the notice of motion.

Lawyer Charles Njuguna, confirming that he had served the respondents with the notice, said the court had allowed them to proceed with the case.

“We have served the county government, Mr Joseph Omulo Okal and Madam R Enterprises, the beneficiary of the tender, with the orders,” he said. Mr Justice Hillary Chemitei certified the case as urgent and ordered the respondents to appear on February 27.

STRING OF CONTROVERSIES

This is the latest in a string of controversies that have seen MPs Fred Outa (Nyando), Olago Aluoch (Kisumu West), Ken Obura (Kisumu Central), Shakeel Shabbir (Kisumu East), Onyango K’Oyoo (Muhoroni) and Aduma Owuor (Nyakach) break ranks with the governor. The MPs were in the delegation that also included County Assembly Speaker Ann Adul and county representatives Prisca Auma, Aggrey Ogosi, Eddy Anayo and Malin Atieno that visited Germany last month “to establish the capacity of the company”.

Kisumu Governor Jack Ranguma, on his part, has distanced himself from the tender, saying he has no knowledge of it.

Mr Okeyo accuses the Kisumu County government of irregularly awarding the bid to Madam R Enterprises.

In his suit, Mr Okeyo lists six grounds based on Articles 3, 22, 35, 42, 46 and 258 of the Constitution. He argues the county government did not follow procurement rules expected of class A tenders, in which the county is categorised. “No tender was floated before the contract was given to the German, which is in breach of the Public Procurement and Disposal Act,” he said.

He is also seeking clarification, of evidence of presented in documents, stating the capacity of the investor to carry out the project costing Sh1.2 billion per year.

“It is doubtful that the company has the appropriate qualifications, experience, equipment, capability and facilities since it has no operational offices,” he stated.

The petitioner also wants the county government and parties involved compelled to produce certified copies of the advertisements for invitation to tender, the valuation report of the tenders, and orders to stop any payments or execution of the project.