INQUIRY

Conflict of interest mars KNCCI-Senate meeting on Covid-19

The trade lobby was told to only explain how it engaged local manufacturers

In Summary
  • Some senators felt KNCCI should have not appeared before the committee because its president is the CEO of a firm that has done business with scandal-laden Kemsa.
  • KNCCI president Richard Ngatia has dismissed claims of being involved in shady deals with the Kenya Medidal Supplies Agency.

A heated argument erupted in the Senate on whether it was proper for Kenya National Chamber of Commerce and Industry to make submissions on Covid-19 to a committee.

A section of senators felt it was improper for KNCCI to make submissions to the Health Committee and the Ad Hoc Committee on Covid-19 Situation because of possible conflict of interest.

Narok Senator Ledama Olekina objected to the lobby making its submissions since its president, Richard Ngatia, is the CEO of Megascope, one of the firms that won contracts at Kenya Medical Supplies Agency.

 

Documents tabled earlier in Parliament showed Megascope was awarded contracts worth more than Sh1 billion at Kemsa, which is under investigations by various agencies over irregular tenders.

Olekina said KNCCI should not make submissions as its president was adversely mentioned in the Kemsa scandal.

“What would we be achieving? It would be proper if we met with the suppliers who are members of KNCCI but we want to deal with a conflicted entity,” he said.

KNCCI had appeared before the committee to explain how, in support of the Buy Kenya Build Kenya Initiative, it had engaged local manufactures to supply reusable face masks to Kemsa.

Ngatia did not appear before the joint committee - he sent vice- president Erick Rutto to make the submissions.

Legal counsel for the joint committee Elizabeth Muhia told Olekina the Senate simply wanted to know how KNCCI engaged local manufacturers.

“Nothing stops the committee from receiving submissions from KNCCI,” she said.

 

Meru Senator Mithika Linturi said the committee was interested in KNCCI as an entity and not the individuals who lead it.

“We are accepting submissions of KNCCI and not individuals,” he said.

Ngatia, who has appeared before the National Assembly Health Committee, asked the legislators to ensure that local entrepreneurs are given priority in any business venture spearheaded by the government.

He dismissed claims of being involved in shady deals with Kemsa in the supply of Covid-19 equipment.

Before the submissions, Rutto declared he is not a supplier of Kemsa and has never done business with the agency.

He further stated that KNCCI did not sign any agreements with Kemsa even as it engaged local manufacturers to supply items to the agency.

“All we wanted is to help small traders to supply commodities to Kemsa,” he added, noting that he did not know the number of KNCCI members doing business with the agency.

Senators also wanted to know how KNCCI dealt with members who had become unprofessional with Kemsa.

“We have a code of conduct but we need all the evidence that someone was unprofessional. One can only be disciplined once proven guilty,” he stated.

Committee chair Sylvia Kasanga was concerned that a lot of private businesses that have traded with Kemsa are the most corrupt.

 

- mwaniki fm

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