CORRUPTION? EACC Stops Mung’aro’s Sh 103M Kilifi Revenue Collection Deal

The Ethics and Anti-Corruption Commission (EACC) has ordered the County Government of Kilifi to suspend the payment of Ksh103 million for a tender issued to purchase a revenue collection management system.

In a letter addressed to Kilifi Governor Gideon Mungaro, EACC faulted the county for signing an agreement regarding the tender despite a caution letter issued on 11th August, 2023.

The commission is now investigation allegations of procurement irregularities for the proposed system.

“In the premises, pending conclusion of investigations, we advise that you suspend implementation of the contract and the payment of the sum of Kshs103, 797,361.70 purportedly being in respect of purchase of the system,” EACC states.

According to the graft body, preliminary investigations show that the successful bidder, identified as Aden Construction Company Ltd, does not have the requisite capacity and experience in undertaking revenue management and collection.

“In support of its bid, it annexed documents belonging to a third party, a firm by the name M/s Techbiz Limited (hereinafter, ‘Techbiz). However, it is critical to note that Techbiz is not a party to the agreement and the competency of the successful bidder must be based on its own merit and not those of a third party,” EACC says.

The commission further notes that there was no meaningful negotiation on revenue sharing and termed the agreed percentage of 25% as exorbitant and unconscionable.

“It is further noteworthy that the said Techbiz is currently providing similar service to the County Government of Mombasa and the agreed rate of snaring is only 5%,” notes EACC.

The EACC cautioned that in the event of loss to the County Government every individual involved shall be held responsible.