Top military brass at Department of Defence (DoD) are grappling with an embarrassing decision in which tender regulations were short-circuited and a South African firm awarded a Sh1.6 billion tender.
The top cadre are in a spot over the belated and irregular decision to cut out four firms initially singled out for consideration for a restricted tender to the SA group direct order to procure Armoured Personnel Carriers (APC).
The high command usually associated with discipline and meticulous approach to their work, and most of who are bedecked with medals of honour and exemplary achievement, turns out ignored a Ministerial Tender Committee (MTC) earlier approval for restricted tendering.
President Kibaki cuts a cake during a thanks-giving service for the disciplined forces at the Holy Family Basilica, Nairobi, on Saturday. With him is Kenya Wildlife Service Director Julius Kipng’etich. Photo: Evans Habil/Standard
Sources report that the manner in which the APC contract was executed was the same case with an unresolved one on Anglo Leasing Security Projects where there was lack of competitive tendering.
At the same time, The standard has established that three senior officers based at DoD — a Major General, a Brigadier and a Colonel — may soon be court-martialed following claims they were involved in over payment of several millions of shillings to a firm (name withheld) to undertake freight forwarding on behalf of DoD.
The firm which is believed have close links with a senior officer at DoD has reportedly been raising invoices for payment without attaching necessary documents such as Airway Bills or Bills of Lading. Major General Simon Karanja — the Commander of Western Command — who is leading the investigation is expected to hand in his report this week.
DoD awarded the USD$20 million (Sh1.6 billion) deal to a South African firm, to the chagrin of the other four companies that had been invited to take part in a restricted, but competitive tender. They are Mechem Technologies (Pty) Limited, Paramount Group, Integrated Convoy Protection (Pty) Limited, all from South Africa, and Israeli’s IAI Ramta.
Documents seen by The Standard show the questionable process took place this month, while the tendering exercise kicked off on September 1 with submission to the MTC.
The new scandal to rock the fortified and secretive world of defence goes contrary to DOD’s own procedures which emphasise procuring “the right Equipment and Systems at the right time, in the right quantity, at the right place, and at the right price by advocating competitive bidding”.
Sources informed The Standard that M/s OTT Technologies (PTY) Limited was on Friday awarded the tender for the APCs after a surprise and last-minute review of the initial timelines set out by the Committee – a move seen as an attempt to favour the firm.
The first procurement timeline, a copy of which is in our possession, was to begin on September 1 when the five firms were recommended for procurement of APCs through Restricted Tendering to June 30 2011, when the deliveries would have been made.
The second procurement timeline, which was reviewed by parties said to be interested in the deal, was to start on August 23 with a team visiting the firms in South Africa, to the delivery of the APCs on February 15, 2011.
All these timelines came to naught after the Permanent Secretary in Ministry of Defence Ambassador Nancy Kirui said in a memo to the Contract Negotiation Committee asked the team to prepare a draft contract agreement for discussion and consideration with M/s OTT Technologies (PTY) Ltd.
“The Draft Contract Agreement should be favourable to the Ministry of Defence. The contacts between the committee and the firm shall be official and business shall be conducted only as convened,” the PS said in the memo dated October 6 and copied to Vice Chief of General Staff Lt-General Julius Karangi.
She further said in the memo that the resultant Contract Agreement shall then be forwarded to the Attorney General for advice on its suitability and the final Contract Agreement to be signed between the PS and the contracted firm.
The Committee is chaired by a Mr C K Muhia and has nine members with Major H Kiprotich as the Secretary. The other members are: Brig. AN Owuor, Brig. K O Dindi, Brig. J Bukhala, Mr E N Murimi, Mr Z G Ogendi, Col. G.G. Kabugi, Col. T CK Kipng’etich and Col. H A Oduor
Sources privy to the row set off by DoD intimated the fast tracking of the tender was part of a wider succession battle looming within the military ranks. The fear, our sources revealed sprung from the fact that there were fears among some top brass, who have riveted their eyes on the APC deal, they may soon be out of office hence — the need to have the tender awarded as soon as possible.
Curiously, OTT got the tender even as the other rivals firms are still waiting for further instructions from the DoD.
An Evaluation team of four officers led by Lt. Col Kamba from the Armoured Brigade (the user unit) was dispatched by MTC to South Africa in August for a fact-finding mission of the five firms.
But interestingly, upon reaching South Africa they received further instructions they should only visit OTT contrary to what was agreed at the MTC meeting.
However, on learning that the Evaluation Team was only visiting OTT, sources said, the Chief of General Staff General Jeremiah Kianga intervened and ordered the officers to make sure all firms that had been listed should be evaluated.
It is believed Kianga had been kept in the dark on the underhand dealings spun by his subordinates.
His action was said to have surprised the interested parties who went back to the drawing board and came up with the reviewed timelines to circumvent the tendering process.
Contacted for comment, military spokesman Mr Bogita Ongeri sought for more time to reply, and later called to say: “There is nothing wrong we have done in terms of procurement of military hardware. We have followed the rules as laid down in the public procurement Act 2005 regulation 2006É all that we have down is clear. We have not violated any procurement procedure.”
An APC is an armoured fighting vehicle designed to transport infantry to the battlefield. According to DOD’s official website, the process for procurement of major equipment follows strict guidelines and foolproof system to guard against corruption and manipulation by wily officers.
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