Kitui social media accounts were on Thursday evening held at ransom by one Mbaki Mbaki, Yatta Kwa vonza ward MCA.
He exposed what he had promised to share a week earlier, Kitui Ballast Crusher.
In Mbaki Mbaki’s long post you will see how the crusher was procured, cost, how a third party was introduced to safe guard cash, Conditions for the award, Importation details etc.
Take a glass of water, soda or any of your favorite drink as we take you through the expose courtesy of Mbaki Mbaki.
“I draw your attention to a contract for supply , delivery , installation and commissioning of a stationary stone crusher plant, 100-120 Tons /hr capacity signed between the county government of kitui and EDN George Diesel Ltd.
EDN George Diesel Ltd is registered under two Directors who also happen to be couples, Namely
1. Geroge Mungai &
2. Nancy Wachira
The said tender was awarded to EDN George Diesel Ltd at a cost of Ksh 85,305,490.09 ON CONDITION that her 2 directors agree to open a new bank account with SIDIAN BANK that would accommodate a relative to the county CEO’s son in-laws (JOHN ODUOR) as a mandatory Signitory to the account.
The Directors EDN George Diesel Ltd had no choice but to comply with the above condition and opened an account on 23/05/18 with sidian bank AC # 01036020003040 and included a stranger one JOHN ODUOR as a mandatory signitory as directed by the son in law from the far west.
The county government through the ministry of trade immediately moved with lightening speed to have the contract signed as their financial interests on the contract had been resolved, on the 25/05/2018 (2 days) the contract was signed.
It’s worth to note that before the award of this contract the the CECM Trade had a quotation from one of the leading crusher plants manufacturers in China (see attached) Ref. No.: SS201801190422A dated 19-01-2018 with total final price cost insurance & freight up to mombasa (CIF) of the plant at US$ 212,433
▶ EDN George (son) went ahead to source for the ballast crusher from Shanghai Zenith minerals sales CO, ltd and a proforma invoice was forwarded to him via email at Us$ 379,532 CIF msa
▶ They prepared a import declaration form # E1807897755 and the same was approved by kenya revenue authority customs department on 06/07/2018. At this stage Ksh 17,061,098 was paid by the county government to EDN George Diesel ltd through their new account with sidian bank. (See attached).
▶Shanghai Zenith minerals sales CO, ltd again issued another invoice for the same plants dated 16/10/2018 with an increment in the CIF MSA from us$ 379,532 to Us$ 396,232
▶ EDN again on 28/08/18 applied another Import declaration form based on the new figures IDF # E180995400 and was also approved
▶The process went on and the plant was shipped under Bill of landing # 142801508896 , on 11/11/2018 the cargo landed and cleared via customs entry number 2018 ICD 60812 which only shows Ksh 1,463,269 was paid as customs dues through the NIC bank on 27/11/2018.
Therefore i sought a quotation for the equivalent Stationary stone crusher plant with 100-120 tons/hr capacity from Shanghai Zenith minerals sales CO, ltd on August 14th 2019 and they same sales manager who sold the county crusher responded with a quotation amounting to US$ $208,499 , please note that the cost of the county crusher up to msa above (Us$ 396,232). See attached.
I went ahead and asked the sales manager Shanghai Zenith minerals sales CO, ltd whether I could factor in my margins on their cost and pay US$ 300,150 for the plant and they refund the difference of US$ 91,651 based on their formal quotation?.
Quick response came through and i want to quote “ we could do this for you but a 10% fee will be charged . This is our company rule. As a result you will have back Us$ 82,486 as US$ 9,165 will be charged”. The sales manager went ahead and complied with my request and generated another proforma invoice totaling US$ 300,150 dated Sept 6th 2019 (see attached).
Do i really need to explain further on what happened in the case of the county crusher???.
If you compare the 2 genuine quotations from SBM and Zenith it’s clear that this plant would cost between Us$ 200,000- Us$ 215,000 even without having to negotiate.
The county has lost approximately Ksh 19,000,000 on the cost, insurance & freight up to mombasa just because someone’s son in law had to do it.
Now kindly relate the above with the AUDITORS GENERALS REPORT.
6.12: Supply,Delivery, Installation and Commissioning of Stationary Stone Crusher Plant.
Note 17 to the financial statements reflects purchase of specialized plant, equipment and machinery balance of Kshs.202,246,459 as at 30 June 2018 which included Kshs.17,061,098 paid to a contractor as 20% of the contract price of Kshs.85,305,490 for supply, installation and commissioning of stationary stone crusher plant. The agreement indicated that 20% was to be paid upon signing the contract, 50% upon delivery and 30% upon successful commissioning. The contract was signed on 25 May 2018 and 20% of the contract price was paid during the year under review. However, the item was not in the procurement plan contrary to Section 53(2) of PPAD Act,2015, no tender evaluation report was availed, particulars of the persons who submitted tenders or their representatives who attended the opening of tenders was not provided contrary to Section 78(10) (b) of the PPAD Act, 2015, regrets letters to unsuccessful bidders were not provided for audit review contrary to Section 87(3) of PPAD Act, 2015. Further, the geological survey report on suitability and viability of the project was not availed.
In the circumstances, the Executive was in breach of the law and there was no certainty that the County residents would get value for money for the Ksh 17,061,098 expenditure as at 30th June 2018. It’s recommended that this be flagged with respective investigative agencies.
The County Government through the Ministry of Trade applied Single sourcing on a project involving such huge amounts of public funds.”
Thoughts expressed are those of the contributor and do not necessarily represent the views of KO
Episode 1 — ENDS