WHITE ELEPHANT

Mtihani House completion to delay further

35-year-old project fails to start despite being allocated over Sh890m by exchequer

In Summary

• Restricted tender was terminated after the bidders were found to be non-responsive.

• One of the bidders did not bind its tender documents. 

Knec headquarters at Mitihani house along Dennis pritt road in Nairobi
Knec headquarters at Mitihani house along Dennis pritt road in Nairobi
Image: FILE

The Kenya National Examination Council headquarters may take longer to complete following fresh hurdles in identifying a qualified contractor.

Knec management terminated the restricted procurement for the works because the bidders were non-responsive.

Knec, through a restricted tender, obtained a list of 14 eligible contractors from the Public Works department to submit tenders for completion of the block.

Of the 14 contractors, only two—Vaghjiyani Enterprises Ltd and Cementers Ltd—responded by the time of the submission deadline.

However, the two tenders were found non-responsive at the preliminary evaluation stage, hence the evaluation committee recommended termination of the process.

A decision by the Public Procurement Administrative Review Board revealed that the tender for Cementers Ltd was terminated for failing to bind the documents and for not providing a commitment to abide by a defect’s liability period of not less than six months.

“The tender document required tenderers to bind all volumes of their respective tender documents by tape.”

Cementers Ltd submitted 13 volumes forming its tender of which three of the 13 volumes were loosely bound and no tape could be seen.

“In the circumstances, it is the board’s considered view that part of the applicant’s tender did not conform to the requirements of the tender document because the same were loosely bound with no trace of three volumes thereof being tape bound.”

The development has subjected the project to further delays despite the Treasury’s allocation of Sh500 million in this year’s budget putting the institution, which is led by Mercy Karogo, on the spot.

The amount was to add to Sh395 million allocated in the first supplementary budget for the financial year 2019-20 with MPs warning they would not allocate more cash to the project if no progress is realised.

Mtihani House, as the project is known, has been under construction for nearly 35 years, with the cost jumping from the initial Sh248 million to over Sh3 billion so far.

Knec supply chain management deputy director advised the council to seek technical guidance from the PPRA on whether the non-conformities in the two tenders were sufficient to warrant them substantially non-responsive.

But in its review, the Public Procurement Regulatory Authority backed Knec's decision saying that bidders are expected to satisfy, meet or comply with specified criteria on the mandatory requirements.

Following the termination, Cementers Ltd applied for a review at the procurement administrative review board seeking nullification of the regret letter from Knec.

It also sought an order quashing the reasons contained in the letter by Knec rejecting the firm’s tender in the subject procurement.

Cementers further sought that the board re-evaluates its tender and the tender document to find the same as responsive.

“An order is issued directing Knec to proceed with tender evaluation and an order that in the alternative, commence evaluation of tenders afresh in compliance with the principles of public procurement,” the applicant said.

However, the board dismissed the application saying the applicant’s form of the tender did not conform to the requirements of the tender document.

“The same was not prepared on stationery with the applicant’s letterhead clearly showing the applicant’s complete names and business address,” it reasoned in its recent judgment.

The board held that the examinations council had leeway to terminate the procurement proceedings on grounds all evaluated tenders were non-responsive.

As the project delays, there are concerns that KNEC could be bleeding taxpayers’ money in exorbitant costs of rent at Sh110 million every year.

Works on Mtihani House began in 1986 at the onset of the 8-4-4 curriculum which has since been phased out in favour of the Competency-Based Curriculum.

Auditor General Nancy Gathungu in her review of the KNEC accounts for the year ending June 2019 flagged the delays saying the taxpayers would not get value for money.

“The council risks losing even more money to lawsuits resulting from a cancelled contract, which may further delay completion of the project,” she said.

Gathungu, in the report, reprimanded the management for failing to provide a roadmap on how it intended to complete the project.

“The delays in completion may lead to cost escalation and stakeholders may not value for their resources if the project is not completed and put to use,” the auditor said.

A contractor for the fourth phase of the project also showed the door in July 2018, with the procuring entity delaying payment of Sh368 million.

Ongata Works Ltd was contracted in 2013 at Sh1.5 billion but the work was terminated in 2018 – the completion currently at 60 per cent.

 

Edited by Kiilu Damaris

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