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Wednesday, December 16, 2015

EACC probes Sh3 billion Mombasa port cranes tender

The EACC is investigating allegations three ship-to-shore cranes costing Sh3 billion are being manufactured locally and not in Ireland, contrary to tender regulations.

The cranes were to be manufactured in Ireland and later shipped to Kenya.

They are allegedly being manufactured at Cormarco Ship Yard in Mombasa, instead of Liebherr Container Cranes Ltd in Ireland.

Although the cranes were to be delivered in 67 weeks, it has been 101 weeks.

Another bidder, Kocks Krane GMBH of Germany, quoted Sh3.2 billion and delivery within 64 weeks.

Conditions stipulated by the Kenya Ports Authority indicate Liebherr, through local agents Altair Co Ltd, were to deliver the cranes.

The production cycle was to be four million cycles for Sh3 billion.

Liebherr delivered one locally assembled crane with a production capacity of two million cycles.

It was quietly received by KPA.

The authority had sought the manufacturing, assembling, erecting, commissioning and supplying of new ship-to-shore gantry cranes.

A complaint written to EACC alleges Liebherr is constructing the cranes at the Mombasa port in breach of the contract.

"LCC is constructing the cranes at the port, a serious breach of the contract signed on December 17, 2013," the letter to the EACC says.

EACC is investigating whether KPA and Liebherr have deviated from tender specifications.

The commission wants to enter the shipyard at the Mombasa port to determine if the cranes are being manufactured there.

Kenya Revenue Authority is demanding Sh300 million in unremitted tax from either KPA or the supplier.

Public Procurement Oversight Authority director general Maurice Juma said KPA awarded the Sh2.4 billion cranes tender without following procedure.

Juma told a Parliamentary committee the tender committee should have awarded the contract after confirming all procurement rules were adhered to.

KPA also allowed Liebherr to change their bid document during the technical evaluation stage, contrary to regulations.


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