Concerns have arisen that personal interests among senior executives at Agro Chemicals Ltd. may have influenced the cancellation of a multimillion-dollar security tender. This controversy followed the evaluation committee’s recommendation to award the contract to Lindum Systems Ltd.
Tender No. ACFC/HR/02/2024/25-6 for security services attracted submissions from 16 firms. Following a comprehensive evaluation, four bids were deemed non-responsive, while 12 met the necessary criteria. In the technical evaluation, three additional bids were classified as non-responsive, leaving nine that exceeded the required 70% pass mark and advanced to financial assessment.
Upon concluding the financial evaluation, Lindum Systems Ltd. presented the lowest bid at Ksh 10,113,924. However, a dispute led to the cancellation of the tender, prompting Lindum Systems to seek a review.
The Public Procurement Administrative Board intervened and instructed Mr. Ashok Agrawal, the accounting officer, to ensure the appropriate completion of the tender process. Despite the committee’s initial recommendation for Lindum Systems, acting supply chain manager Amos Mwaighonyi expressed concerns regarding the company’s status as a newcomer in the industry. He questioned whether Lindum had the necessary physical, financial, and human resources to meet the security requirements and suggested reconsidering bids from Canon Security Ltd. and Chakra Company Ltd.
However, on June 21, 2024, committee chairperson David Morogo rejected Mwaighonyi’s request for a re-evaluation, reaffirming the committee’s original findings supported by due diligence.
On June 26, Mwaighonyi raised a conflict regarding the proposal to terminate the tender and reissue it. Subsequently, Mr. Agrawal endorsed the recommendation to terminate the procurement process, informing bidders on July 7, 2024.
Despite this decision, Lindum Systems filed a request for review with the Public Procurement Administrative Board on August 20, 2024. The board confirmed that the tender was for the 2024/2025 financial year, with a budget of Ksh 11.5 million, and adequate funding was available.
In its ruling, the board annulled the termination of tender No. ACFC/HR/02/2024/25-6, extending its validity for 90 days from July 19, 2024. It also ordered Agro Chemicals to proceed with the procurement process to its lawful conclusion within 21 days of the ruling.
