Kimwarer dam contract went to unqualified firm

Kimwarer dam. [Christopher Kipsang, Standard]

The multi-billion shilling contract for Kimwarer multi-purpose dam project was awarded to a company that did not win the tender, a witness has told the court.

Isaac Mbugua testified that the contract was awarded to Italian firm CMC Di Ravenna Limited in disregard of recommendation by the tender evaluation committee, saying it was not the best to undertake the project.

"The committee had recommended the contract be awarded to Sinohydro Corporation Limited because it had the best bid and scored the highest during evaluation. We did not recommend CMC Di Ravenna Limited which was awarded the contract," said Mbugua.

He said all Kerio Valley Development Authority (KVDA) tender committee members approved the award to Sinohydro Corporation Limited and didn't know how the company was short changed.

The witness was testifying in the case where former Treasury CS Henry Rotich and former KVDA managing director David Kimosop are charged with conspiracy to defraud Sh63 billion for construction of the Kimwarer and Arror multipurpose dams in Elgeyo Marakwet County.

Other accused include former Chief Economist Kennedy Nyakundi, former Nema MD Geoffrey Wahungu and KVDA officials Jackson Kinyanjui, William Kipkemboi, Paul Kipkoech, Francis Chepkonga and Titus Muriithi.

Mbugua, who was among seven-member tender evaluation committee, testified further that although they recommended the contract for Arror to be awarded to CMC Di Ravenna Limited, the company again used a different name when it signed the contract with KVDA.

"The bid was submitted by CMC Di Ravenna Limited and they got the award but when the contract was signed, the name of the company changed to CMC Di Ravenna Itinera Joint Venture of South Africa," he said.

He said four companies had submitted their bids for the Arror multipurpose dam including CMC Di Ravenna, Sinohydro Corporation Limited, China Jia Xi Limited and Angelique International Limited.

After evaluation of the technical capacities, the committee disqualified Angelique International Limited and the remaining three companies went for the final financial evaluation.

"CMC Di Ravenna emerged the highest bidder with a score of 90 per cent and we recommended that it be awarded the contract for Arror dam," said Mbugua.

However, when it came to Kimwarer dam, the witness said only CMC Di Ravenna and Sinohydro Corporation Limited submitted bids and after evaluation, they recommended the latter be awarded the contract after scoring 91 per cent.

He added that the technical evaluation committee was not aware that KVDA had advertised for qualified companies to submit their expression of interest to undertake the project. The hearing continues.