Kenya's Most Authoritative Political Newspaper

Citizen Weekly

Sunday, 21 February 2016

Tender scam at Athi Water Services Board


Our Reporter
With barely two months before the Athi Water Services Board CEO Malequen Miulgo proceeds for terminal leave pending end of his contract in November, details of how he manipulates the tender committee in awarding multi-million tenders have emerged.
According to sources from the tender committee, the CEO is a man obsessed with the big man syndrome and dictates on who gets what tender.
A perfect example is the augmentation of the Tigoni water supply where 28 companies submitted their tenders among them Yarrow Construction, Machiri Ltd, Oriental Construction, New Age Developers, Tisco Construction among others.
Shockingly and by order of Miulgo, the tender was awarded to Flozziz Construction Ltd which had quoted Sh121,975,587 yet it was not the lowest bidder. Sources allege the directors of Flozziz Construction Ltd offered the CEO Sh2m.
In another tender for Athi Water Boreholes Phase II, 20 companies submitted their bids. Among the companies are Insta Pumps, Prime Rigs, Njuca Consolidated, Shanxi Geological among others where the lowest bidder was Turn-O-metal which had quoted Sh197m but it was awarded to Njuaca Consolidated. Sources alleged that the company’s directed gave a Sh6m bribe.
Another tender is the Oloitoktok water supply and sanitation where 14 firms submitted their tenders namely Penelly Construction (Sh845,223,494), Lee Construction (Sh895,831,031), Vaghjigai Enterprises (Sh894,940,801), Byusuff and Sons Ltd (Sh875,555,937) and Unibee Construction (Sh679,738,830) among other tenderers. Sources again allege that the CEO was allegedly given Sh200m by Byusuff and Sons Ltd and was unprocedurally awarded the tender yet it was not the lowest bidder.
To block the disgruntled tenderers from filing complaints at the Public Procurement Oversight Authority, Miulgo withholds regret letters to the unsuccessful bidders after 21 days to technically knock them out from taking the case to the PPOA for review. Sources say by the time he releases the letter, contracts are already signed making it impossible for the unsuccessful bidders to demand a review.
Section of the tender committee and staff are now appealing to the board under the chairmanship of Keen Wachira never to attempt to renew Miulgo’s term which expires in November 2016. Already the tender scam allegations have been forwarded to the Ethics and Anti Corruption Commission for action. Sources say he has confided in his close allies that he has sent emissaries to the Deputy President William Ruto to sweet talk Water minister Eugene Wamalwa to give him another term. The board is expected to give him a six-month leave pending retirement beginning June 1 2016.