Nairobi — The Ethics and Anti-Corruption Commission (EACC) has directed Kilifi County Government to suspend the scheduled payment of Sh103.8 million for the purchase of a revenue collection management system.
In a letter dispatched on Monday, EACC Regional Manager for the Upper Coast region, Ben Murei, advised Governor Gideon Mung'aro to halt the procurement process or face sanctions for misappropriation of public funds.
The anti-graft agency said a preliminary investigation had unearthed serious violations of the law, and cases of outright disregard for public interest.
"In the premises, pending conclusion of investigations, we advise that you suspend implementation of the contract and the payment of the sum of Sh103,797,361.70 purportedly being in respect of purchase of the system," he wrote.
The commission also stated that a further inquiry had shown the contracting company, Aden Construction Company Ltd, lacked the expertise and resources necessary to handle revenue management and collection.
EACC pointed out that the firm submitted documents of a third party tech firm identified as Techbiz Limited which is not a party to the agreement.
The agency added the competency of a successful bidder must be based on its own merits and not the third party's.
The commission noted that the technology firm was offering a similar service to Mombasa County at a rate of 5 per cent of collected revenues terming the 25 per cent endorsed by Mung'aro's administration as exorbitant.
"More importantly we note that, there was no meaningful negotiation on revenue sharing and termed the agreed percentage of 25 per cent as exorbitant and unconscionable," EACC observed.
EACC warned if the County Government suffers a loss, all officials involved will be held accountable.
To aid the investigation, EACC asked Kilifi's Acting County Secretary to provide documents on the authorized procurement plans for the fiscal year 2022-2023, the approved budget as well as the request for the tender.
EACC also asked to the county to furnish it with the advertisement for the mentioned tender and a blank tender document placed on the IFMIS site.
