The Central Bank of Kenya (CBK) was reportedly almost conned KSh320 million (US$3.72m) in the purchase of an integrated security management system (ISM) totalling more than KSh1 billion (US$11.6m).
According to a report by the Standard newspaper the plot to steal from the regulator involved the use of fake documents and ignoring procedures by the Public Procurement Oversight Authority (PPOA).
The system in question would have performed various tasks including tracking, access control, key management, fire control and biometric among other functions all used by the CBK.
The fraudsters are accused of lying to the PPOA review board, dismissing recommendations of the tender evaluation committee twice and introducing illegal technicalities.
The PPOA, in a letter obtained by Standard, termed the CBK board an “unruly horse” which has to be “tamed and calmed”.
It added: “A procurement entity that attempts to run away from the parameters set by the Act and the Regulations must be contained and forced to comply with the Act and the Regulations.”
Of the six companies that responded to the tender by the CBK, three bidders were initially assessed to pass the technical requirements, with Horsebridge finally chosen.
The British comany has quoted CBK KSh326 million (US$3.7 million) less than Israeli company Orad, which had quoted KSh1.56 billion (US$18.1m).
Some members of the review process reportedly then told Horsebridge to inflate their cost to KSho1.4 billion shillings (US$16.2m).
On refusal the tender was terminated leading to Horsebridge seeking redress from the PPOA, which led to the launch of investigations by the Ethics and Anti-Corruption Commission (EACC) which has already written to the CBK governor asking for details on the case.
Although the board is in a process of re-awarding the tender, letters from the EACC indicate that CBK did not comply with an opinion from legal experts to appeal the board’s decision.
