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"content": "Committee observed that EGMS programme was a self-funding programme as the manufacturer was charged Kshs1 per stamp. The question of whether Section 26(6) of the Public Procurement and Asset Disposal Act was complied with by KRA may not, therefore, be sustained in light of the self-funding nature of the programme. Based on the evidence adduced by the KRA, the Committee observed that there is need to review pricing mechanism and consequently the contract may have been probably justified by the expansion of the scope of the excise goods for which the EGMS was to be used and the need to ensure there is sustainability. Above all, the KRA sought advice from the Office of the Attorney-General who is the Principal Legal Adviser of the Government, and who draws his mandate from Article 156 of the Constitution as well as from the Public Procurement Regulatory Authority to renegotiate with SICPA in the contract. Based on the evidence adduced before our Committee, we feel that it was not possible for the KRA to procure an alternative manufacturer to produce stamps with designs and security agency compatible with the tracking platform designed by SICPA without transfer of intellectual property rights to another supplier."
}