Counties

Planned Nakuru revenue system runs into a hitch

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Nakuru Governor Lee Kinyanjui on August 28, 2017. PHOTO | AYUB MUIYURO | NMG

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Summary

  • The Public Procurement Administrative Review Board (PPARB) has cancelled the contract that had been awarded to Dynamic Financial Research Consulting Limited, for supplying the system.
  • The tender amounted to Sh34.51 million, with the rate of 4.3 percent commission of total revenue collected through the integrated Revenue Collection Management System (ICRMS).
  • The directive by the board follows a filed review by one of the bidders, Riverbank Solutions Limited and Sporto Limited, citing irregularities in the procuring process against the County.

A planned integrated revenue system for Nakuru County is set to delay following an order by the State’s procurement regulatory board on allegation of alleged breach of laws.

The Public Procurement Administrative Review Board(PPARB) has cancelled the contract that had been awarded to Dynamic Financial Research Consulting Limited, for supplying the system.

The tender amounted to Sh34.51 million, with the rate of 4.3 percent commission of total revenue collected through the integrated Revenue Collection Management System (ICRMS).

The directive by the board follows a filed review by one of the bidders, Riverbank Solutions Limited and Sporto Limited, citing irregularities in the procuring process against the County.

The process attracted eight tenders.

The system is meant to assist and increase revenue collection, to support the county's own budget and reduce reliance on the national government following the establishment of the devolved units.

Among issues raised by the applicant, Riverbank Solutions, is that the review of the process was filed outside the statutory of law.

Section 167 (1) of the Act states that an aggrieved tenderer may seek review to the Board before 14 days of notification of award.

The tender submission deadline was on October 8,2020.

This means the Riverbank had to file a request for review latest by October 22.

According to the PPRA, the applicant however stated that he collected the letter of notification of unsuccessful bid dated November 6, from the post office on December 2.

This was despite the county government stating that notification of award to the successful tenderer and notification of unsuccessful bid to unsuccessful tenderers were sent on the same date of 6th November 2020.

The board also stated that the county and Dynamic Financial Research entered into a contract on December 1, even before the Riverbank received its letter of notification of unsuccessful bid on December 2, thus rendering the contract null and void.

Riverbank had asserted that its tender was rejected on the premise that it was not submitted through IFMIS.

However, the board said that this did not form part of the procedures and criteria set out in the Tender Document contrary.

The county was also faulted for giving bidders six days and instead of seven for preparation of tenders which is exclusive of the day of the notice.

The board ordered the accounting officer to declare all tenders uncompetitive and proceed with the procurement process of the system.