Members of Parliament in the newly refurbished Chambers during the official opening at Parliament buildings on August 7, 2012. Three Parliament committees will investigate the cancellation of a Sh55 billion tender for construction of a new airport terminal at JKIA. Photo/SALATON NJAU
What you need to know:
Speaker Kenneth Marende directed the Budget, Finance and Transport Committees to probe the matter and report back to Parliament within 14 days.
Transport Minister Amos Kimunya was put to task to explain why he disregarded seven opinions, including that of the Attorney-General to cancel the airport tender.
Mr Kimunya said the KAA management disregarded the directive to cancel the tender and went ahead to award it to Anhui which entered a joint venture with another firm China Euro International Company in three days.
Three committees of Parliament will investigate the cancellation of a Sh55 billion tender for construction of a new airport terminal next to the Jomo Kenyatta International Airport.
Speaker Kenneth Marende directed the Budget, Finance and Transport Committees to probe the matter and report back to Parliament within 14 days.
Transport Minister Amos Kimunya was put to task to explain why he disregarded seven opinions, including that of the Attorney-General Githu Muigai to cancel the tender awarded to Anhui Group Ltd, a Chinese company.
Kimunya said he halted the tender in February “after realising that the speed with which it was being rushed was suspect.”
“I received a letter from the Prime Minister’s office through my PS Mr Cyrus Njiru advising that the Kenya Airports Authority (KAA) immediately stop the tender and seek a Cabinet memorandum given the enormous resources necessary to execute the project,” said Mr Kimunya.
Mr Kimunya said the KAA management instead disregarded the directive and went ahead to award the tender to Anhui which entered a joint venture with another firm China Euro International Company in three days.
“Three days before tender closure, the office of the Prime Minister wrote a letter to us which read in part that that project as structured required massive resources and must be send to the Cabinet for approval,” he said.
Mr Kimunya also said he received three opinions from the Attorney-General with the last one directing him to seek advice from the Public Procurement Oversight Authority (PPOA), the advice he is still awaiting.
Mr Kimunya said KAA board, as well as his ministry begun to act when the tender was rushed by the KAA management.
“Out of 120 bidders only one succeeded. It pricked us how the same was fast tracked, approval granted, notification letters sent to China and acknowledgement from the company received within three days,” he said.
The KAA Board however refused to approve the same after the tender sum moved from $500 million to $655.8 million to date, Mr Kimunya said.
As a result no agreement has been entered into between KAA and Anhui. He said the government does not anticipate to incur any loss in line with section 53 of PPOA.
Mr Kimunya denied having any interest in the contract.
“We are not delaying development of the airport. When you speak to defend public trust you step on many toes. This is one case where people are fighting because something has not gone their way,” Kimunya said.
