Ouko okays Kebs award of Sh2.7bn tender to Japanese firm

Auditor-General Edward Ouko has endorsed the award of a Sh2.7 billion motor vehicle pre-shipment inspection contract to a Japanese firm.

In a special audit report to Parliament, Mr Ouko said the Kenya Bureau of Standards (Kebs) adhered to the procurement law in awarding the tender to Quality Inspection Services Japan (QISJ).

The standards body signed the three-year tender to QISJ on February, 2, 2015 which will run to January 2017. The contract commenced on March 1.

Aggrieved bidders had claimed that due diligence was conducted on QISJ after issuing it with a letter of award.

East African Automobile Services Co. Ltd, Japan Export Vehicle Inspection Company (JEVIC) Ltd and Auto Terminal Japan (ATA) Ltd unsuccessfully appealed to the Public Procurement Administrative Review Board for review of the award.

“The procuring entity (Kebs) observed the provisions of the Public Procurement and Disposal Act, 2005 and Act and its regulations 2006 in adjudicating the tender as the winning bidder was arrived at on the basis of the due tender process which was backed with a trail of documents in line with procurement regulations,” said Mr Ouko.

He said QISJ is capable of handling the contract as required by the Kenya Standards Code of Practice KS 1515:2000.

“The previous contract was handled by three firms which included QISJ that won the contract. Based on this experience and evidence collected has indicated that the winning bidder…is capable of handling the contract as required,” said Mr Ouko.

READ: Kebs retains services of delisted Japanese car inspection firm

The National Assembly Public Investments Committee had directed Mr Ouko to conduct a special audit on the procurement of the tender for provision of pre-export inspection services for used motor vehicles in Japan, United Arab Emirates, the UK and South Africa following a challenge by two losing bidders.

The tender attracted seven bidders, QISJ, JEVIC, East African Automobile Services, Bureau Veritas, Wilnar International Company, Japan Auto Appraisal Institute and Auto Terminal Japan.

In his findings, Mr Ouko said JEVIC contravened section 38 of the Procurement Act on inappropriate influence on evaluations by seeking recommendation from the Kenyan embassy in Japan on November 14, 2014.

Mr Ouko, however, ruled out the possibility of fraud in the procurement process saying an analysis of the process for pre-export services for used vehicles shows that Kebs complied with the law and regulations.