Parliament wants the anti-graft watchdog to probe and prosecute former National Cereals and Produce Board (NCPB) managing director Gideon Misoi for breaching procurement rules in the hiring of two law firms.
The National Assembly’s Public Investments Committee says Prof Misoi contravened procurement laws by engaging services of the law firms of Mr Katwa Kigen and Mr Juma Kiplenge in 2012.
The two firms were not on a list prequalified by the NCPB to battle a breach of contract case lodged by a firm associated with slain businessman Jacob Juma.
The committee, which examined the findings of Auditor-General Edward Ouko on the accounts of NCPB for the four-year period to June 2015, says 80 per cent of the Sh48,515,172 that the board incurred in legal costs against a case filed by Erad Suppliers & General Contracts went to the two law firms. “The committee recommends that the Ethics and Anti-Corruption Commission investigates Prof Misoi and takes the necessary legal action against him for contravening procurement laws,” Adan Keynan, who chairs PIC, said in a report of the committee tabled in Parliament before the House went on an end of term recess.
Erad Suppliers had sued NCPB for breach of contract for supply and delivery of 40,000 metric tonnes of imported white maize during the drought in the financial year 2004/2005.
The supplier however failed to deliver the maize within two weeks as envisaged in the contract leading to the cancellation of the contract by NCPB.
The supplier thereafter referred the matter to an arbitrator citing breach of contract for failure to open a letter of credit (LC).
The matter was heard by the arbitrator who awarded Erad $3,106,000 together with interest of 12 per cent.
Erad went ahead and attached the board’s bank accounts amounting to Sh314,658,018.