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{
    "id": 510328,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/510328/?format=api",
    "text_counter": 133,
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    "content": "a total overhaul of the law, regulations and practice governing all aspects of confidential expenditure in Government to protect public funds from abuse on the pretext of confidentiality for national security. The new system that the Committee proposes should be considered must be one that finds a perfect equilibrium between the ends of national security vis-à-vis constitutional principles of open, prudent, responsible and accountable use of public resources. Among the international best practices cited in this, is the South African example, which has been explained by the Committee at page 40 of the detailed Report. The Committee also recommends that Mr. Ben Kihia should report to his new station at the Ministry of Industrialisation with immediate effect and invites the Ethics and Anti-Corruption Commission (EACC) to investigate his activities at the Office of the President with a view of taking appropriate action against this officer. The report refers hon. Members to pages 39-40 for details of these recommendations. The other issue of concern that we have drawn hon. Members’ attention to, under the same Ministry is irregular procurement of residential houses and commercial units for police. The Committee records that seven payments totaling Kshs.1.3 billion were made between 15th June, 2012 and 23rd November, 2012 to East Gate Apartments Limited for purchase of 300 residential units along Kangundo Road in Nairobi, for both the Kenya Police and the Administration Police. Direct procurement by way of expression of interest was used instead of open tendering. Invitation for sealed bids was made to a single vendor who also determined the purchase price. Curiously, a subsequent valuation by the Ministry of Lands merely confirmed the vendor’s bid price as the value of the property. The Committee noted that the law used to back this procurement is section 76(1)(a) and (b) of the Public Procurement and Disposal Act, which is restricted to procurement for services or a combination of goods and services. The Act specifies that a service to be procured in this manner must be of advisory or predominantly intellectual nature. The Committee notes that housing units certainly do not fit this classification. Further, a sum of Kshs.30,193,971.63 of public funds appears to have been lost by way of overpayment because the plinth area was inexplicably overstated by 228 square metres from the correct 314 square meters, which was paid for. Other issues of concern noted include the arrangement where uniformed officers share premises with civilians who own private houses in a compound classified as a police line that is complete with an armoury. Hon. Speaker, the Committee noted the myriad irregularities and concluded that this transaction appeared tailor-made to benefit a particular favoured vendor. There are indications of collusion and the law was clearly violated, specifically sections 74(1), 74(2)(a) and (b) and 74(3)(a), (b) and (c) of the Public Procurement and Disposal Act, and Section 62(2) of the Public Procurement and Disposal Regulations. The irregular selective process compromised value for money and robbed the public of the benefits of competition. The Committee recommends disciplinary action against the Accounting Officer and other officers involved and invites the EACC to investigate this matter further, including lifting the corporate veil to determine the real faces behind East Gate Apartments Limited."
}