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{
    "id": 461229,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/461229/?format=api",
    "text_counter": 172,
    "type": "speech",
    "speaker_name": "Hon. Keynan",
    "speaker_title": "",
    "speaker": {
        "id": 41,
        "legal_name": "Adan Wehliye Keynan",
        "slug": "adan-keynan"
    },
    "content": "did not attempt to find out about the existence of that document; the bank did not find out and M/s Erad Supplies and General Contracts Limited did not also make full disclosure that the fake bid bond was used to consummate that particular contract. When that was done, the second thing was how they signed the contract. They had that fake bid bond, and the second thing was how to get the performance bond. Hon. Speaker, Sir, these same individuals, instead of going back to I&M Bank, they went to another bank called Dubai Bank and they presented the contract, dully executed, together with the forged bid bond and the Dubai Bank issued another performance bond on the basis of that forgery. Therefore, the three documents, the contract document, the bid bond and a performance bond that was anchored on the bid bond, were presented back and this was what was executed to purportedly import maize. It was because of this that the Permanent Secretary, Mr. Kinyua, and others felt something was awfully wrong; they notified the different players and as a result of this - I say this without fear or contradiction - there was no intention from the beginning to import maize. Eventually, when these companies started wobbling in their effort to import maize, the management of NCPB did not invoke the provisions of the contract document to enforce a breach of contract by M/s Erad Supplies and General Contracts Limited. They waited until M/s Erad Supplies and General Contracts Limited said that there was a breach of contract. Once this happened, this issue was given to an arbitrator. Hon. Speaker, Sir, those who are lawyers will acknowledge how difficult it is to deal with arbitrators. An arbitrator was given the issue to handle. There was a document that was presented to one arbitrator by the name Evans Githuro, who, shockingly, gave an award that had not even been asked for. M/s Erad Supplies and General Contracts Limited asked for compensation of US$8 per metric tonne. Shockingly the arbitrator gave them US$49 per metric tonne and that was not something that was asked for. Secondly, the arbitrator gave M/s Erad Supplies and General Contracts Limited storage charges. How do you give storage charges where there was no storage since there was no maize in the first place? The NCPB was asked to pay for storage and the question is: where was the maize that was stored? The NCPB was again asked to pay interest at the rate of 12 per cent per annum. Hon. Speaker, Sir, when this happened, there were a lot of accusations and counter accusations and the NCPB eventually demonstrated how individuals within the NCPB were part of the cartel that hired a lawyer. From that time to date, the NCPB has spent over Kshs30million on litigation. They have hired several lawyers and the case has not been concluded, as we speak. The Attorney-General (AG) was not involved; the Ministry of Finance was involved at the peripheral level and the procurement process was completely suspended. Eventually, this company was given an arbitral award. Initially, the company was given an arbitral award of almost Kshs900 million, but in between they felt that figure was too alarming and it was reduced to about Kshs613 million or its equivalent. If they were genuinely doing business and they know that, that arbitral award is theirs and they were awarded Kshs900 million, why would they shy off? They should be laughing all the way to the bank. They were given Kshs900 million and they asking whether it can be reduced. The figure was reduced to about Kshs600 million. That is what was used to auction all the properties. We visited the headquarters of the NCPB and their depot. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}