Massive procurement irregularities at Kenya Power were first exposed by the Star on May 25.
Yesterday, Kenya Power managing director Ken Tarus, who was charged alongside his predecessor, Ben Chumo, and other senior managers, all denied charges of wrongdoing. They are remanded Gigiri Police Station pending bail submissions today.
On May 25, the Star published an audit report detailing massive procurement improprieties at the listed power distributor. The embattled managing director vowed to take action.
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The report on a tender to supply labour and transport for the 2016-17 financial year exposed an intricate web of collusion between employees and supplier companies — some of which are owned or associated with the staff — in a dizzying display of malfeasance.
It revealed how staff colluded with unregistered companies, or front proxies, to win tenders. Some were pre-qualified despite having no record of legal status.
The report exposed money transfers between
directors
of the pre-qualified firms
and KPLC staff. Some employees took money from contractors and shared it with others who could influence the tender process.
The report showed how only two members of the Tender Opening Committee were present at the opening of the bids, contrary to Section 78(1) (a) of the Public Procurement and Disposal Act. This law states that
the Tender Opening Committee shall have at least three members.
A search at the Registrar of Companies offices revealed that 137 firms out of 525
pre-qualified firms submitted CR12 certificates, which were different from those held by the Registrar of Companies.
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