Economy

Procurement watchdog okays Safaricom’s Sh12bn police deal contract

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Safaricom CEO Bob Collymore briefs President Uhuru Kenyatta and top Interior ministry officials on plans to implement the Integrated Public Safety and Security System at the President’s Harambee House offices in Nairobi earlier this year. PHOTO | FILE

The public procurement watchdog has said it approved a security surveillance contract awarded to Safaricom by the Interior ministry.

The Public Procurement Oversight Authority (PPOA) on Thursday told the National Assembly’s Committee on Administration and National Security that it gave the multi-billion-shilling security contract the go-ahead after determining that due process had been followed in awarding the tender.

“In our view, based on copies of records, the procuring entity observed due process in awarding tender,” Jane Njoroge, the deputy director of PPOA told the committee.

“The threshold for procuring through direct procurement was met and the justification given on method of procurement lies within the circumstances listed under Section 74(3) of the Public Procurement and Disposal Act, 2005.”

Safaricom is set to build a high-speed, fourth-generation network —also known as Long Term Evolution network — and supply the police with radio communication devices (GSM walkie-talkies fitted with SIM cards).

The company will spend Sh12 billion on the project that the government will reimburse in phases.

The Treasury put the total estimated cost of the project at Sh18.8 billion, including Value Added Tax and Excise Duty charges. This include Sh6.2 billion frequency allocation fee that Safaricom has been exempted from paying.

The House committee in June ordered the suspension of the integrated security system contract until MPs approve the project.

READ: House suspends Safaricom’s security tender

The approval by PPOA paves the way for the Treasury to sign the final contract, which is also tied to the Parliamentary probe.

Safaricom is to be paid the Sh12 billion in four installments, but the mobile telecommunication is willing to extend the project payment period to seven years. It will also earn Sh2 billion over four years as maintenance fee.