Row deepens over KEBS multi-billion shillings contract

The battle for pre-shipment inspection of motor vehicles contract, which has since reached implausible levels of hostility continues to take shape five years later.

The duel, which is still ongoing has attracted interventions from even the highest offices on the land since year 2011. The Standard on Saturday is in possession of highly confidential documents detailing how the battle has so far degenerated.

On one hand, senior government officers have traded accusations of insubordination while on the other hand, some firms have been accused of playing ‘dirty’ games in regard to the contract.

The highly lucrative job is so crucial that on one instance, Kenyan Embassy in Japan allegedly went ahead to recommend a firm without, Kenya Bureau of Standards (KEBS) soliciting for the same in the current contract. It is not clear why the Embassy would write to KEBS to recommend a firm yet KEBS had floated an international tender regarding the same.

This tender begun in February, 2011. However, after evaluation, the tender committee refused to award it to any of the bidders and instead recommended that it should be cancelled. The tender was cancelled.

Leading bidders in this first contract were Quality Inspection Services Japan (QISJ) which scored the highest, Japan Export Vehicle Inspection Centre Company Ltd (Jevic) and Auto Terminal.

A new bidding process would commence after the tender was re-advertised in May the same year but after evaluation, the tender would again be cancelled for the second time. It is this second cancellation that led to exchange of bitter words through confidential letters in our possession. The fire pitted the management of KEBS on one hand, and the line ministry on the other.

On October 3, 2011, Industrialisation PS Karanja Kibicho wrote to KEBS acting managing director then Eva Oduor. Kibicho accused Oduor of handling the process in a clandestine manner saying, “In your letters, you raised several credibility issues on the processing of the international tender for provision of inspection services for second hand motor vehicles imported to Kenya.

In particular, you raised issues that touched on unsolicited communication by Jevic to managing director KEBS, procurement department and the Minister for Industrialisation in total contravention of section 38(1)(a) of the act...Public Procurement Oversight Authority (PPOA) advised that appropriate action be taken against JEVIC for contravening the said section of the act.”

He went on to say: “It has come to my attention that despite the gravity and seriousness of this matter, you have proceeded to process the tender for Jevic without giving any explanation of actions taken against them...this tender is for the same service and it goes against any common reasoning why Jevic was not disqualified from the process...the purpose of this letter is to ask you to provide this office with an explanation of actions taken against Jevic before you proceed the tenders further.”

Kibicho who is currently Foreign Affairs Principal Secretary would write another protest but confidential letter accusing KEBS top management of insubordination. In particular, he was concerned that his earlier instructions had been somewhat ignored.

His second letter dated October 24, 2011 reads in part, “..I find it an act of insubordination for the Acting Managing Director to have ignored the content of the letter and gone ahead to process the tender. It is not lost on me that after Jevic was not awarded the tender, the acting MD within a few days cancelled the tender citing anomalies related to the diligence process.”

However, after protracted battle, the contract would be awarded to all the three companies namely QISJ, Jevic and Auto terminal. But in the process of the execution of the tender, reports emerged that overage and radiation material infected motor vehicles had been cleared for importation into the country.

Indeed, then minister for Regional Development Fred Gumo wrote to KEBS in a letter dated July 10, 2012 complaining that JEVIC had cleared a defective vehicle he had purchased from Japan.

Mr Gumo’s letter read in part, “I bought the above car (Toyota Land cruiser Chassis No: JTEHC05J204035557) in Dubai and took it to Jevic Ltd for inspection according to Kenyan standards and the vehicle was declared to be in good condition mechanically.

On arrival in Kenya, I took it to Toyota Kenya Ltd for normal inspection but the vehicle was found to be defective. The evaluation amounted to Sh2 million.”

A similar letter was dispatched to KEBS from the Ministry of Transport involving a falsified logbook of a car belonging to an official in the Ministry of Foreign Affairs whose content and details Jevic had cleared.

But in their response dated February 2013, Jevic International Operations manager Aaron Treadaway said: “I do not believe that we have established that Jevic Dubai did not undertake adequate background checks on the vehicle at the time of inspection...Jevic Dubai checked the vehicle as per the agreed processes and additionally viewed the Dubai Customs Authority documentation.”

Treadaway went on to say: “ It has been rumoured that KEBS were able to secure registration exemptions for a large quantity of overage vehicles during January. Given that ability to exercise direction, it would seem conceivable for KEBS to ensure this importer is able to be provided with some official lenience where the exporter has executed a systematic deception,” he said

Ethics and Anti-Corruption Commission has in the past raised concerns and proceeded to investigate circumstances under which overage and radiation infected motor vehicles found their way into the county having been given a good bill health.

Jevic is accused of having cleared at least 115 defective motor vehicles.

We obtained a list of the said vehicles including their chassis number, entry number, date of arrival, importer and exporter certificate number among other details mid this month.

Jevic lost the contract for pre-shipment inspection of motor vehicles to QISJ.