The Export Promotion Council is on the spot over Sh45 million extravagant expenditure during last year’s expo in Astana, Kazakhstan.
The council spent Sh152 million to finance the June 10-September 10 expo that turned into a disaster after only one Kenyan exhibitor participated.
A delegation of more than 10 EPC staff attended. Documentary evidence shows that Sh18 million was spent on track suits, Sh14 million on event mobilisation, Sh12 million on a market survey, Sh1 million on press conferences and Sh150,000 on Twitter and Facebook accounts.
single-sourcing
According to documents obtained by the Star, the track suits were single-sourced, contrary to public procurement laws. They were used by less than 15 participants, who took part in a half marathon to wind up the expo in September last year.
“Event mobilisation, market survey and press conferences fall in one category of communication and advertising, but each was itemised and billed separately, which is duplication just to make money for tasks that never happened,” a source familiar with the Astana planning and execution said.
ceo says matter is internal
But EPC chief executive Peter Biwott was hostile to enquiries from the Star.
“Why are you taking over duties assigned to the EACC and the Auditor General?” he asked.
“You are raising issues that are not public, they are internal matters. How do you say that staff contracts were extended? Those are internal issues and you can’t ask that,” he fumed, demanding to know the source.
“If that information you are holding didn’t come from me, then treat it as false. I’m the only one who is supposed to give you such information.”
He later fired off a letter to the Star editor, claiming the newspaper was trying to undermine the council and should instead focus on export issues.
Regarding apparently profligate expenditures, he wrote, “This is incorrect information and will be treated as rumours, unless the source is revealed.”
He explained that “all merchandise produced for use in expos is intended at promoting the country through sharing with participants from Kenya and other countries who register to participate in our
thematic activities.”
He claimed that Expo Astana has “generated value and achievements, but acknowledged that they “encountered language barriers and social introvertism due to the former orientation of Khazakhstan to socialism that still makes the idea of business forums or development new to them.”
contract extensions
The agency responsible for promoting Kenya’s exports is also under scrutiny over irregular contract extension for officers who have hit retirement age and choice of delegations to attend trade fairs.
Regulations guiding public service dictate that officers who are due for retirement are supposed to proceed to six-month leave before their retirement date.
The council has, however, issued three of its staff who have attained retirement age with extension contracts, contrary to regulations.
The CEO declined to respond, saying it’s an internal matter and “the Star should not be encouraged to overstretch this far.”
He also dismissed allegations that the parastatal was frustrating private exhibitors intent on attending trade fairs in order to pave the way for cronies and friends in public service.
Trade fairs and expos are meant for companies in different sectors to market their countries, exhibit their products and win customers.
Exhibitors also strike trade deals and study new market trends in the industry to promote exports.
select cronies
An exhibitor said they were deliberately locked out of the just ended Spring Fair 2018 in Birmingham, UK, after they had been cleared by the same EPC to attend to showcase their handicrafts.
“Twenty of us had been cleared by the EPC to attend the expos, but only four were facilitated as required to attend,” the exhibitor complained.
“These frustrations are not new. They happen when they [EPC] want to create opportunities for their own cronies.”
But Biwott defended the parastatal, saying its role is to enable exporters to “acquire exhibition space at the fair but does not pay for their transport and accommodation.”
“In case the exporters do not travel, the EPC supports them by exhibiting their products and profiling any orders or market links they can gainfully exploit,” he said.