Raila?s ex-aide quotes double price, wants tender nullified

Former Prime Minister Raila Odinga's ex-aide Eliud Owalo quoted double the lowest tender price but is still trying to persuade the Public Procurement Oversight Authority to help him win a Kenya Pipeline Company contract.

On June 13, 2016, Owalo wrote to the PPOA director general Maurice Juma demanding that a KPC tender for consultancy services for a feasibility study and preparation of blueprint for geographical expansion be nullified.

Eliud & Associates lost out after they quoted Sh154,848,000 compared to Sh74,496,194 by the top company Kawamuh Ltd. The tender is yet to be formally awarded by KPC.

In his letter, Owalo claims the financial proposal of Eliud & Associates was irregularly opened by KPC staff and its contents leaked to Kawamuh who then undercut his firm.

However, Owalo does not explain how they did so when the inner envelope containing his financial bid was examined and found to be intact. He also has not explained why Kawamuh chose to undercut his firm by more than Sh80 million if they knew the price. Normally a bidder who has prior knowledge of his competitor's bid will only undercut the rival by a small margin. Kawamuh's price was 48 per cent of Eliud's.

Nevertheless KPC chairman John Ngumi wrote back to Owalo and confirmed they would investigate the allegations.

"We acknowledge receipt of your complaint vide letter dated June 13, 2016, on the subject tender which was addressed to the director general of PPOA and copied to us. We wish to confirm we are giving the matter the utmost attention required and shall revert as soon as possible," Ngumi said.

Owalo had also said only two bidders had come on time for a pre-proposal conference on May 17, so all the others should have been disqualified.

He complained despite two bidders' financial proposals being opened. He said he only got email notification for the opening of the financial bids and expected to have been contacted by telephone. Owalo nonetheless attended the opening, thereby confirming that he indeed received communication about the opening, at which he was the only bidder present.

Source