House freezes Sh212m pay to former radio host’s firm in contract probe

Parliament has directed the Public Service, Youth and Gender Affairs ministry not to pay a firm associated with former radio presenter Angela Angwenyi until the Ethics and Anti-Corruption Commission (EACC) concludes investigations into her firm’s Sh302m contract.

Public Accounts Committee chairman Nicholas Gumbo asked the ministry’s accounting officer, Principal Secretary Lillian Amollo and National Youth Service (NYS) director Richard Ndubai not to release Sh212 million balance to Out of the Box Solutions Limited until the anti-graft watchdog files a report on how it secured the advertisement contract.

READ: Angela Angwenyi firm pressed on Sh302m contract

Ms Angwenyi on Wednesday told PAC that the ministry had so far paid Sh90.7 million. Out of the Box had won a consultancy contract for user support services and sensitisation campaigns to enhance access to the 30 per cent of government tenders reserved for women, youth and the disabled.

Controversially won contracts

She said the EACC had stopped the ministry from making payments pending conclusion of its investigations into the contract.

The PAC directive followed failure by Ms Omollo and Mr Ndubai to produce request for proposals (RFP) documents for three firms that controversially won contracts to provide consultancy services during the rebranding of the NYS.

Ms Omollo only provided an RFP for consultancy services for media buying that was awarded to Brand Associates at a cost of Sh101 million.

She said there were no RFPs for the other two firms-Consulting House Limited associated with political analyst Mutahi Ngunyi and Out of the Box Solutions. The firms were paid millions of shillings.

“With regards to the contract awarded to Out of the Box Solutions, the ministry should not pay any remaining balance until the EACC and this committee pronounces itself on this matter.

“We believe that the contract is very suspicious because two firms-Round Trip Kenya Limited and Out of the Box which was awarded the contract suddenly changed to Out of the Box Solutions limited,” Mr Gumbo said.