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"content": "Mr. Temporary Deputy Speaker, Sir, Kenya Railways Corporation, without open tendering, in 1996 entered into a Kshs4.9 billion contract with the General Electric INC. for the overhaul and maintenance of 35 locomotives. The Committee observed that no approval from the Treasury was sought prior to awarding the contract through single sourcing. We noted that the cost of the project that was Kshs4.9 billion would have been less if these services had been procured from the open market. Kenyatta National Hospital further procured nuclear medicine equipment through an agent, Glotex Kenya Limited without signing any supplies contract. Further the equipment could have been procured directly from suppliers at a reasonable cost. No due diligence studies were undertaken to establish the ability of the company to deliver leading to failure by the company to replace items worth Kshs13,388,760 delivered with wrong specifications."
}