FALLEN AIRLINE

DCI steps up probe into irregular tendering at Kenya Airways

Airline lost Sh100 billion in 10 years, probe to ascertain whether KQ staff conspired to bring down the airline

In Summary

• DCI demands documents from airline including budget plan, tender advertisements and details of procurement committee that authorised the award.

• Probe was triggered by a report prepared by the audit firm Deloitte four years ago.

Kenya Airways plane at the Mombasa Airport
AUDIT: Kenya Airways plane at the Mombasa Airport
Image: FILE

The DCI has demanded documents for an investigation into procurement flaws involving an aircraft engine repair contract at Kenya Airways.

This is to step up a probe into how KQ lost Sh100 billion in 10 years in operational missteps that have brought the airline to its knees.

The DCI wants the airline’s procurement guidelines since 2015 and procurement plan for 2017-18 and 2018-19.

Also sought is KQ’s budget plan, tender advertisements related to the contract, tender documents by the potential bidders and details of the procurement committee that authorised the award.

In a letter to managing director Sebastian Mikosz, DCI’s Abdalla Komesha of the Banking Fraud Investigation Unit has also demanded evaluation reports on the tender.

Final sourcing reports, details of the composition of the KQ board and management structure are also required. The detectives are also looking for tender approval minutes by the committee in respect of the engine repairs contract and board papers requesting for approval for tender awards.

On Tuesday, Kenya Airways management confirmed that the airline was under investigation, assuring the police it would cooperate.

KQ Corporate Communications manager acknowledged that the DCI requested for the documents to facilitate investigations.

“Kenya Airways welcomes the investigation by the DCI. We are engaging with the team to provide the necessary support and information.”

“This is part of our overall strategy to ensure transparency and integrity in all our procurement processes and operations,” the statement reads.

The DCI further wants tender approval minutes by the KQ board and letters of contract awards for the two financial years.

Komesha is at the same time wants KQ to furnish his office with contract documents, payment documents and all correspondences about the tender including e-mails.

The DCI is conducting a probe to ascertain whether KQ staff conspired to bring down the airline.

 

The probe was triggered by a report prepared by the audit firm Deloitte four years ago.