KRA in a spot as Public Procurement Oversight Authority stops Sh1.2 billion tender

The Public Procurement Oversight Authority (PPOA) has summoned a firm that was awarded a tender to install a new customs systems at Kenya Revenue Authority (KRA).

PPOA wants Bull SAS - a French-owned computer company, to appear before it during a hearing on controversy surrounding the Integrated Management Customs System (ICMS) tender.

The PPOA board ruled that Bull SAS Company be served with application papers and a list of all tender documents and bidders ahead of the Tuesday ruling.

“The ruling will be held on July 7. As for today’s appearance, each party will cover their own costs,” said PPOA Director General Maurice Juma. PPOA will rule whether Bull SAS won the tender rightfully and dismiss an appeal by Webb Fontaine.

KRA officials have defended the tender saying they are not in charge of the tendering process. “Trade Mark East Africa (TMEA) is fully in charge of the process,” KRA representative Wangui Mwaniki said. TMEA is a donor-funded organisation that aids regional and international trade.

Mr Mwaniki also told the PPOA board that KRA has no tender documents despite being the beneficiary of the system.

But the lawyer for the applicant (Web Fontaine) Paul Muite, told the board that preliminary objections by KRA who are first respondent, and TMEA second respondent on the jurisdiction to entertain application for review is “irredeemably flawed.”
Webb Fontaine, which provides technologies to governments and organisations, appealed the award of the tender to Bull SAS claiming the process was flawed.

The tender in question is a funded projected in favour of KRA and Bull SAS was controversially awarded to install Sh1.2 billion ICMS systems that was expected to facilitate regional trade and ease revenue collection. The tender was previously awarded to Simba System.

Bull SAS did not appear in the pre-qualification list, yet they were the winners of the bid raising suspicion.

There are claims of questionable negotiations between Bull and TMEA before the award of the tender. Documents show that the two teams met on April 27 to negotiate the contract before the winner was announced on Thursday last week. There are claims that Bull SAS did not submit all requisite documentations for the tender.