Tender No.KPA/9A.3/OT/005/22-23 was for the supply and delivery of low Sulphur Diesel, the tender had been advertised on 18th October 2022 and the tender opening was on 22nd November 2022. The five companies which sent their bids include East African Gasoil Ltd, Oryx Energy’s Kenya Ltd, Nyumba Itu energy, Hass Petroleum and Rubis Energy Kenya
Details of why a tender worth Ksh. 8.7 billion in favour of Rubis Energy was cancelled by the Public Procurement Administrative Review Board have now emerged, this is according to sources who spoke to The Weekly Vision on condition of anonymity for fear of victimization. Sources say that officers from the procurement entity, Kenya Power and Lighting were involved in a scheme that worked to lock out another tenderer Galana Oil Kenya Ltd.
The sources add that top officers at the procurement department at Kenya power worked in cahoots with the IT department of the same company that eventually caused a technical hitch that led to the locking out of Galana Oil Ltd. Tender No.KPA/9A.3/OT/005/22-23 was for the supply and delivery of low Sulphur Diesel, the tender had been advertised on 18th October 2022 and the tender opening was on 22nd November 2022. The five companies which sent their bids include East African Gasoil Ltd, Oryx Energy’s Kenya Ltd, Nyumba Itu energy, Hass Petroleum and Rubis Energy Kenya.
According to Galana Oil, the deadline for submission of the tender was set to take place on 23rd November 2022 at 10 am. However, Galana was not able to access the portal on the morning of 23rd November 2022 to upload and submit its final price schedule. It is claimed that technical officers from the Kenya Power IT department under the leadership of general manager Information and Communication Technology Robert Mugo together with procurement officers under the leadership of Dr John Ngeno who is the General Manager, Supply Chain and Logistics colluded and generated a technical error and it was not possible for Galana to log in
After evaluation, three companies were found to be non-responsive while 2 were responsive including Rubis Energy Kenya. A professional opinion dated 30th November 2022 signed by the Kenya Power and Lighting General Manager Chain and Logistics Dr John Ngeno concurred with the recommendations of the tender and evaluation committee to award the tender to Rubis Energy Kenya.
The award of the tender was approved and assigned by the acting MD Geoffrey Muli on 1st December 2022 and tenderers were notified of the intention to award the tender on 2nd December 2022. On 1st December Galana Oil through their consumer sales manager Jude Nthiwa applied for a review and the stopping the process arguing that Galana Oil had been blocked from accessing Kenya Power’s e-procurement web portal and could not submit bid proposals.
According to Galana Oil, the deadline for submission of the tender was set to take place on 23rd November 2022 at 10 am. However, Galana was not able to access the portal on the morning of 23rd November 2022 to upload and submit its final price schedule. It is claimed that technical officers from the Kenya Power IT department under the leadership of general manager Information and Communication Technology Robert Mugo together with procurement officers under the leadership of Dr John Ngeno who is the General Manager, Supply Chain and Logistics colluded and generated a technical error and it was not possible for Galana to log in.
Galan’s attempts to get technical support from Kenya Power’s technical IT team failed as they tossed them left, right and centre until the 10 am deadline elapsed. It was later discovered that the login details and passwords were changed seven times by Kenya Power to lock out Galana Oil. According to the Public procurement Administrative Review Board, Kenya Power was required to make its e-procurement system open and accessible to all prospective tenderers before the tender submission deadline.
In her ruling, the Public Procurement Administrative Review Board ordered that the tender be cancelled and/or terminated in its entity. Kenya Power was further ordered to commence a new procurement process within 14 days of the decision which is dated 22nd February 2023.
