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{
    "id": 96143,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/96143/?format=api",
    "text_counter": 148,
    "type": "speech",
    "speaker_name": "Dr. Khalwale",
    "speaker_title": "",
    "speaker": {
        "id": 170,
        "legal_name": "Bonny Khalwale",
        "slug": "bonny-khalwale"
    },
    "content": "million and the X-ray equipment were worth Kshs123.4 million. The sutchers were worth Kshs40.3 million and finally the medical supplies were worth Kshs17.87 million. Mr. Deputy Speaker, Sir, on the 20th of February 2006, M/s. Unimet Supplies and Services launched a complaint to the Public Procurement Complaints Review and Appeals Board against the award of those tenders above. The complaint was dismissed. In its ruling the Board observed that once a Local Purchase Order (LPO) was issued, a binding contractual relationship was established and the parties to the same were bound by the contract. In May 2006, the Ministry of Health opened an irrevocable Letter of Credit worth Kshs123.4 million in favour of Dol International Limited to facilitate supplies in performance of its contractual obligations. Towards the end of May 2006, the Ministry cancelled the Letter of Credit and declined to receive and make payment to Dol International Limited and associated companies on the LPO of 0061843 for the supply of sutchers that was worth Kshs40.3 million. Mr. Deputy Speaker, Sir, this was after the KACC notified the Ministry of its intention to investigate the matter on account of irregularities and\\or corruption in the procurement process. Amongst the alleged irregularities in the procurement process was that when the Ministry’s Technical Evaluation Committee carried out its evaluation, it was satisfied there were seven qualified suppliers of sutchers samples that were submitted by bidders and all were to be submitted to the Ministerial Tender Committee for consideration. However, only the sample by Dol International Limited was submitted to the Ministerial Tender Committee for consideration. In the meantime, Dol International Limited and its associated companies had procured all the contract items under that LPO and were in the process of delivering them to the Ministry. The items, in accordance with the tender standards and specifications, were marked Ministry of Health, Government of Kenya and further indicated that they were not for sale. They had been stored at the company offices in Kenya and abroad. Items under that tender S/KE/RU – HEA – 2/98/25/I6 which were drugs and medical equipment had been received by the Ministry and had been distributed to various health facilities in the country. I have attached the letter dated 11th of August 2006 from the Ministry of Health to the KACC which I have referenced as Annex I. Following the Ministry’s action to cancel the LPO, Dol International Limited and its associated companies had no choice but to proceed to court to safeguard their interest. Through the Miscellaneous Civil Application No.273 of 2006 in the High Court of Kenya at Nairobi, the companies amongst others obtained the following orders:- (i) They obtained leave to apply for order of statutory, quashing the unilateral decision of Permanent Secretary, Ministry of Health to cancel or terminate LPO Nos.0061843, 0061880, 0061967 and Tender Award No.SD/KEN/RU – HEA – 2/98/25/IS."
}