The board and management of the Kenya Pipeline Company are expected to separately appear before a National Assembly committee within14 days to explain their roles in the award of the Sh1.9 billion tender for the construction of the controversial Kisumu oil jetty.
The energy committee summoned the officials to appear before it in a fortnight after it emerged that they have been rowing over the tender.
The committee, chaired by Nakuru Town MP David Gikaria, summoned the top officials after board claimed that the procurement committee usurped its mandate by allocating more money for the jetty, an action contrary to the Public Finance Management Act on allocation and consumption of budget and channels of budget approvals.
Two bidders attained the minimum technical and financial score of over 75 percent.
The two companies were Southern Engineering Company Ltd whose financial bid was Sh1.9 billion and China Communications and Constructions Ltd whose bid was Sh2.08 billion.
The evaluation committee went on to award the tender to Southern Engineering Co Ltd.
INCREASED COST
But documents in custody of the Energy Committee show that the evaluation committee anticipated an increase in the budgetary value of the tender which was against the board’s resolution.
The documents show that the National Treasury allocated Sh1.47 billion which was the cost of implementing the project to completion but the evaluation team drafted a contract of Sh1.9 billion instead, which was Sh500 million more than the approved budget.
While the KPC board chairman John Ngumi told the parliamentary committee the board approved a budget of Sh1.487 billion for the construction of the jetty, the management insists the project cost 1.9 billion to complete.
The construction of the jetty and the increased cost led to the sacking of several KPC managers, including former managing director Joe Sang. They are all facing criminal charges over the procurement.
“The board approved a budget of Sh1.478 billion and this is what went to Cabinet Secretary in the Ministry of Energy for onward transmission to the National Treasury Cabinet Secretary.
“I will be surprised if the management passed a budget different from what was approved by the board,” Mr Ngumi told the committee.
Mr Ngumi’s position was supported by the National Treasury which said Sh1.487 billion was approved on September 21, 2016 for the project.
By Daily Nation
