Kenya Anti-Counterfeit Authority Caught In Tender Scam

The names being mentioned include that of the immediate former Acting CEO Ms Fridah Kaberia who has since been replaced by Dr Robert Mbugua Njoroge who was appointed in August 2022. Also mentioned are members of the tender committee led by Senior Supply Chain Management Officer Martin Atemo. According to the report, a tender for the purchase of two Go-Downs in Nairobi by the Anti-Counterfeit Authority has been cancelled by the Public Procurement Review Board following a successful application by Gilbi Construction Company Ltd

Detectives from the Ethics and Anti-Corruption Commission are said to be conducting investigations over an alleged bribery report against senior officers at the Anti-Counterfeit Authority. Sources say the EACC sleuths are relying on a report released by the Public Procurement Review Board dated 15th February 2023 in which top ACC officials and members of the tender committee are alleged to have received bribes from a tenderer Athi River Housing Company ltd.

The names being mentioned include that of the immediate former Acting CEO Ms Fridah Kaberia who has since been replaced by Dr Robert Mbugua Njoroge who was appointed in August 2022. Also mentioned are members of the tender committee led by Senior Supply Chain Management Officer Martin Atemo. According to the report, a tender for the purchase of two Go-Downs in Nairobi by the Anti-Counterfeit Authority has been cancelled by the Public Procurement Review Board following a successful application by Gilbi Construction Company Ltd.

According to the report dated 15th February 2023 signed by the board’s chairperson, the agency advertised tender No. A.C.A/OT006/2021-2022 for purchase of two Go-Downs in Nairobi on 7th June 2022.  A total of six tenderers submitted their tenders where Gilbi Construction Ltd quoted Ksh.50m, Puple Dot International quoted Ksh.37,999,000, Geoma Generakl Merchants quoted Ksh.120m, Athi River Housing quoted Ksh 62,500,000, Placid properties Ltd quoted Ksh.67,510,000 while  Three Bees Ltd quoted Ksh. 60,000,480. At the initial stage, two tenders including Athi River Housing Ltd were found to be non-responsive while four proceeded to the next stage.

In the second evaluation stage, five tenders were found to be non-responsive. The rest proceeded to the next stage of evaluation. The tender committee recommended that Athi River Housing be awarded the tender having quoted a total of Ksh. 62.5m per Go-Down totalling Ksh. 125m.

Senior Supply Chain Management Officer Martin Atemo in his opinion concurred with the tender committee concerning the award of the tender to Athi River Housing ltd.  On 10th October 2022, the Acting CEO Ms Fridah Kaberia also concurred with the tender committee’s decision to award the tender to Athi river Housing Ltd.

In a related report by the Auditor General says the Anti-Counterfeit Authority management failed to professionally handle pending cases which might lead to the loss of public funds. According to the report, there are pending legal proceedings against the Authority that may, if successful, have a significant impact on the agency’s operations

All the tenderers were issued letters of notification to award the tender to Athi River Housing Company Ltd. However, Gilbi Construction was not satisfied with the decision and on 21st October 2022, he lodged an appeal with the Public Procurement Review Board.  The board considered the parties’ pleadings, documents and written submissions to make a determination.  The board found out that the tender committee knowingly failed to evaluate Gilbi’s tender 1(a) and 1(b) in accordance to the law.

The ruling reads in part “the letter of notification with an intention to award addressed to the interested party dated 10th October 2022 in respect to tender no. A.C.A/OT006/2021-2022 for the purchase of two Go-Downs in Nairobi is hereby nullified and set aside.

The report further reads “The First respondent is hereby ordered to direct the tender evaluation Committee to re-admit the applicant’s tender at the technical evaluation stage and conduct a re-evaluation of the applicant’s tender and the technical evaluation stage together with all other tenders.

In the final orders, the Public Procurement Review Board directed that “he respondents are hereby directed to proceed with the procurement process to its logical conclusion including the making of an award to the successful tenderer within 14 days from the date of this decision” Gilbi Construction company management has welcomed the ruling and now the agency has no option but to cancel the tender it had awarded fraudulently to Athi River Housing which had quoted Ksh. 125m while Gilbi Ltd had quoted Ksh.100m. 

In a related report by the Auditor General says the Anti-Counterfeit Authority management failed to professionally handle pending cases which might lead to the loss of public funds. According to the report, there are pending legal proceedings against the Authority that may, if successful, have a significant impact on the agency’s operations.

This includes five civil cases with a contingent liability of Ksh. 9,431,000 which had adverse rulings. There is also a case where an accused was charged with possession of counterfeit electric bulbs and accessories but was acquitted of the charges in a Court of Law.

 However, the accused person and others instituted a civil case at Milimani Law Courts seeking special damages of Ksh. 603,500,000 against the Authority for unlawful arrest, malicious prosecution and destruction of property.

Although the Authority released part of the goods seized to accused persons, they complained that the remaining goods had been destroyed and they could not take destroyed or damaged goods.  Further, there were other pending contingent liabilities amounting to Ksh.21,622,418 as of 30th June 2020.

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