Electoral agency lost Sh21m in buying security seals, MPs told

IEBC commissioners (from L) Abdi Guliye, Boaya Molu, Chairman Wafula Chebukati and Acting CEO Marjan Hussein when they appeared before the Public Accounts Committee to respond to the audit queries raised by the auditor general. November 27, 2018. Photo/Jack Owuor
IEBC commissioners (from L) Abdi Guliye, Boaya Molu, Chairman Wafula Chebukati and Acting CEO Marjan Hussein when they appeared before the Public Accounts Committee to respond to the audit queries raised by the auditor general. November 27, 2018. Photo/Jack Owuor

The IEBC lost Sh21.8 million four days to the August 8 election last year in the purchase of security seals for extra ballot boxes after the supplier failed to provide them, MPs heard yesterday.

The commission had awarded the Sh19.6 million security seals tender to M/S Far East Ltd to supply 3,696,000 seals at Sh5.30 each.

However, by July 22 – less than a month to the election – the contractor had only supplied 2,001,600. The commission had to directly buy 500,000 pieces off the shelf at 10 times the initial unit price.

The IEBC spent Sh24.5 million to acquire additional seals at Sh49 a piece.

The MPs heard that M/S Far East Ltd delivered the remaining 1,694,400 seals on October 19, 2017, two months after the election.

The commission said the seals were received and are lying at the Independent Electoral and Boundaries Commission’s warehouse.

The IEBC team, led by chairman Wafula Chebukati, was responding to audit queries raised by the Auditor General in his 2016-17 report.

In submissions before the PAC, chief executive Hussein Marjan defended the extra spending, saying it was the only option available after the first contractor failed.

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“The commission did not anticipate that M/S Far East Ltd wouldn’t meet its contractual obligation to supply the required seals by August 2, 2017 – six days to the election” Marjan said.

“To salvage the situation, the commission resorted to use the direct procurement method to avert a constitutional crisis that may have threatened public health, welfare, safety or damage of property.”

He said due to short delivery timelines, change of procurement method and change of specifications the prices increased from Sh5.30 to Sh49 per unit.

Marjan told MPs the commission changed specifications of the seals from plastic to wire seals, an assertion contested by Auditor General Edward Ouko.

“Although the commission has explained that the unit prices of seals differ due to the metallic nature of the latter, audit verification did not observe any metallic seals as they were of similar quality,” Ouko says in the report.

The PAC is chaired by Ugunja MP Opiyo Wandayi.

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