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Court okays DCI probe of Sh840m Kemsa bids

Directorate of Criminal Investigations
The Directorate of Criminal Investigations (DCI) has been allowed to continue with investigations into what is suspected to be fraud at the Kenya Medical Supply Authority (Kemsa). FILE PHOTO | NMG 

The Directorate of Criminal Investigations (DCI) has been allowed to continue with investigations into what is suspected to be fraud at the Kenya Medical Supply Authority (Kemsa).

The DCI has been investigating the possibility that some senior Kemsa officials used fake documents to award a contract that exposed the agency to possible loss of Sh840 million.

The investigations into the procurement started after one of the bidders, Sai Cargo Masters Ltd, complained of irregularities.

Harry & Stan Company Ltd, one of the firms involved in the contract, has gone to court for orders to stop the probe.

High Court Judge Chacha Mwita has ruled that there is no doubt that the DCI has a mandate to conduct investigations with a view to detecting and preventing crime once reported.

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The DCI had told court that their investigations revealed valuable details that they would want to follow up. “Harry & Stan has not shown that the Inspector General of Police and the DCI are acting outside their constitutional and statutory mandate,” Justice Mwita said.

The judge said that if there is anything of interest from the information the DCI will have gathered, Harry & Stan will be given an opportunity to respond.

“The law will not protect privacy where the information sought is for enforcement of the law and is sought in a lawful manner. The information sought is intended to aid investigations and where possible enforce the law. That cannot be said to be a breach of privacy,” the judge said.

According to the DCI, they unearthed a possible fraud and collusion. The multimillion shilling transport tender was initiated in 2016 and finalised in 2017.

The bidders were required to provide at least three customer referrals within three years where they had made Sh20 million annual revenue or carried out a project of similar value.

The tender was awarded to BM Logistics at a cost of Sh39.8 million while Harry & Stan won another at Sh17.8 million. E Logistics won the tender for the supply to the Eastern at Sh12.5 million. They cost Sh70.2 million quarterly and run for three years at Sh842 million.

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