Mitchel Cotts, a company linked to Baringo Senator Gideon Moi and retired President Daniel arap Moi’s aide Joshua Kulei is among the companies given a tender two years ago to construct some peripheral cargo storage facilities on behalf of the Kenya Ports Authority (KPA) next to the Nairobi Inland Container Deport (ICD).
The move came after the government issued a decree that clearance of cargo from Mombasa be done at the Embakasi ICD in Nairobi. The peripheral cargo storage facilities were meant to store cargo which had overstayed at the ICD, reported to be a total of over 30,000 twenty-foot equivalent units (TEUs) containers at that time. The move is suspected to have been artificially instigated to rekindle hopes of the Standard Gauge Railway (SGR), whose cargo transportation business was not doing so well.
It is reported that after the decree was issued, container traffic on the SGR shot up by four times. The ICD could only handle 15,000 TEUs, hence this created another avenue for cartels to loot through construction of the peripheral cargo storage facilities. In order to address the congestion issue, KPA was allowed to lease Periphery Storage Facilities (PSFs) outside the ICD. Despite not being among the 30 companies that tendered for the contracts, Mitchel Cotts won the tender alongside Nairobi Inland Cargo Terminal, a company linked to little known Mr John Katiku.
It is however believed that the company is owned by senior politicians.
Several senior KPA managers, including embattled KPA MD Daniel Manduku, and KRA Commissioner for Customs Kevin Safari have been questioned by the Directorate of Criminal Investigations (DCI) over the same, and could be charged soon.
Other Scandals
KPA MD Daniel Manduku has a court case for irregularly awarding Ksh2.7 billion contracts to certain firms some of which didn’t complete ther
An investigations file by the Economic and Commercial Crimes Unit of the DCI suggested that Manduku oversaw the preparation of bills of quantity for eight firms without requisition forms from the user — the inland container depot in Nairobi for the Makongeni Goodshed Yard project.
Manduku, KPA General Manager in charge of Operations William Rutto, Senior Works Officer Anthony Muhanji, Works Officer Juma Chigulu and Principal Works Officer Bernard Nyobange are said to have colluded to divide the 2100 square meters yard belonging to Kenya Railways into 9 zones and awarded 8 contractors the concrete works.
The split termed unprocedural with the aim of avoiding open and competitive tendering process is believed to have cost the taxpayer Ksh.506 million.
Investigations reveal that the companies were paid in full despite not completing the job, as Kenya Railways reclaimed its land and demolished the concrete.
In the Kisumu Port Revitalization project, Ksh.800 million was shared by seven companies despite the works having been projected to cost Ksh.100 million.
Investigators say a top official at KPA was pushing for the seven companies to be awarded the tenders.
Procurement regulations were breached to award the seven companies the tenders with detectives reveal that documents were forged to sanitise the process. Records recovered from the KPA finance department show how the loot was shared.
Ponoma Constructions pocketed Ksh.205 million, Ricco Contractors bugged Ksh.108 million, while Ksh.129 million went to associated electricals, Yuaf Agencies took home Ksh.163 million while Stone Contractors pocketed Ksh.128 million tudor. Engineering Limited was paid Ksh.35 million and Kites Technicals Ltd is said to have taken home Ksh.33 million, according to the investigations report.
Suspects here include KPA boss Manduku, Mathews Amutu, who heads the port electrical works, Project Manager William Tenay, Head of Procurement Aza Dzengo, Principal Procurement Officer Ali Mwinjaka, Civil Technician Tom Okeyo and Directors of Stone Contractors.
Investigators believe that Manduku directed that a Ksh.1.4 billion tender for the construction of 17,940 concrete barriers be awarded to 10 companies without following the procurement regulations.
Two senior KPA officials have told investigators that there was no need for concrete barriers. Even then, the barriers were grossly overpriced from about Ksh.10,000 to Ksh.79,000 a piece.
Suspects here include, KPA MD Daniel Manduku, Senior Works Officer Anthony Muhanji and Works Officer Juma Chilugu.
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