By Anderson Ojwang
Is Kisumu County government emerging as the tragicomedy in tendering of lucrative contracts in the country, where the politically correct, influential personalities and blue-eyed companies dictate the tender awards and sub-contracts?
Picture this scene 1, two politically correct persons with no known registered business company walk to the County, negotiate for a lucrative donor-funded tender, and after a month walk away with Sh 111M World Bank-funded improvement of Kisumu Sports Ground.
Excited by the breakthrough, the duo quickly goes on a search for a company in which to undertake the contract.
With millions on the air, they approach a friend with an offer of Sh 5 million, and with the harsh economic times, the lady luck dances on their side, and subsequently they are granted joint attorney and open a bank account with one of the local commercial banks in the town.
For them, the tendering process is just but a formality to comply with the procurement law as the winner is already predetermined at the high table of kings and queens.
Picture scene 2, The Kisumu City Manager writes to the Client’s Bank requesting that it suspend any transaction on the account held contractor with immediate effect until guided otherwise.
The bank acting on the instruction of the Kisumu City Manager suspends writes to the client suspending operations of the account until further notice.
And hell breaks lose with flying counter-accusations from by contractor and Kisumu City Board that spill the rot at both the county and the board.
First, the contractor alleges that after signing the contract and payment mobilization fees they were allegedly summoned to a meeting where they were directed to subcontract a blue-eyed company in the lake city to undertake the civil works.
But they declined the directive and subsequently, the bank account was frozen and another meeting was scheduled where they agreed to sub-let the contract.
Welcome to Kisumu City, the third-largest city in Kenya after the capital, Nairobi, and Mombasa, and the second-largest city after Kampala in the Lake Victoria Basin.
Where lucrative donor-funded projects are a preserve for the high and mighty, the politically correct persons, and the blue-eyed companies known to the power that be.
Where the local and emerging business entities hardly secure lucrative contracts despite participating in the tender bidding processes.
Importantly, the County Government and the City Board have in the last two decades, received hundreds of billions of shillings for various donor-funded projects funded by the World Bank, the French Government, the German Government, and other International Development Partners.
Back to the Jomo Kenyatta Sports ground improvement project, the two business persons are former member of Kisumu County Assembly (MCA) Mr. Bob Otieno Ndolo Owiyo and the current nominated MCA Emily Mildred Anyango Oginga, the younger sister to former Prime Minister Raila Odinga. Note, that the tender was awarded in July 2020 before Emily was nominated as a member of Kisumu County Assembly.
According to Ndolo, he says Emily is his partner for the Kisumu Sports ground contract and they were forced to look for a company to apply for the tender.
Emily also confirmed that Ndolo is his partner in the project and they had their own special arrangement for the project.
“I do not want to comment further than that. Kindly, let the matter come to a rest,” she said in a telephone interview.
“We approached the proprietor of Brama Logistics Enterprise to give us the power of attorney to seek for a tender with Kisumu city Board, We paid him Sh 5m and we the two were granted the power of Attorney,’ he said.
The agreement of power of attorney was drawn by Olel Onyango, Ingutia, and company and signed on 14th July 2020 and was signed by Mr. Gabriel Atieno Ochieng and Wilfred Akinyi Ogada and commissioned by Odhiambo E Ouma advocate and Commissioner of Oaths.
Similarly, a contract award between the City of Kisumu and Brama Logistics Enterprises LTD was dated July 2020 and was described as County Government of Kisumu, City of Kisumu, Kenya Urban Support Program (KUSP0, Improvement of Jomo Kenyatta Sports Ground.
Ndolo says a month after signing the contract, the city board released Sh 22M for mobilization and was invited for a meeting by the acting City Manager Mr. Abala M. Wanga.
In his letter to the World Bank Country Director, Ndolo claims “I was summoned by the acting City Manager, during the meeting, I was informed that the higher authorities had directed us to subcontract all civil works within our projects to Kisumu Concrete Products(KCP)”.
Ndolo says after consultation with his partner, they realized that the civil works component was the only area where they could generate a modest profit from the project and subsequently rejected the proposal.
“Upon conveying our decision to the Acting Manager, he retaliated by writing to our bank and instructed the bank manager to suspend any further activities related to our account,’ he alleges
A letter dated 17th November 2020, signed by Abala M Wanga, Ag City Manager, to the Branch Manager, Ecobank, Kisumu Branch captioned Re Suspension of operations of Brama Logistics account.
It reads in parts “ Reference is made to the contract No, CGK/CoK/KUSP/V/2019-2020/03-1 signed between Brama Logistics and the City of Kisumu of the contract Jomo for improvement of Kenyatta Sports Ground.
Since, the release of the advance payment to the firm and subject to our assessment, we have confirmed that there is a problem in the execution of the contract.
We therefore wish to instruct the bank to suspend any transaction in the account held by the firm with immediate effect until further notice,”.
The bank acknowledged the receipt and stamped the letter, as inward mail.
The Bank also responded immediately to Brama Logistics Enterprises, in a letter dated 17th/November 2020 captioned: Re- Suspension of Transactions on Brama Logistics Account No. 6616007641 and signed by Mr. Thaddeus Okwaro, for and on behalf of, ECOBANK Kenya Limited.
The letter reads in parts “ The attached letter, Ref CGK/CoK/CM/KUSP/Vol1/2 from the County Government of Kisumu here refers.
We hereby confirm that any transaction on Brama Logistic account number 6616007641 has been put on hold with immediate effect until further notice.
Should you require any further clarification regarding the above subject, do not hesitate to contact the county government of Kisumu”.
Ndolo says the situation forced them to subcontract to Kisumu Concrete Products by giving them all the civil works for a sum of sh36m,
Our efforts to get comment from Kisumu Concrete Products were unsuccessful after Mr Rabadia Lalji Chano did not pick up our calls and did not respond to our text by the time of going to the press.
One of the responses by Abala to Ndolo claimed that the latter was out in a smear campaign to disparage and dent the image of the county through blackmail and extortion tactics.
“In light of these circumstances, my office has formally submitted a statement to the Directorate of Criminal Investigations. They may consider contacting you to clarify your position regarding your defamatory claims,” he wrote.
Interestingly, on 2 August 2024, the Board wrote to the project consultant about the release of retention monies.
It reads in part ‘ We are in receipt of the contractor’s request to release the final retention for the above project. The defect notification period has since ended and we would wish to be furnished with the certificate of making the good report and performance certificate as per GCC11.9
The contractor by this letter is advised to liaise with you in the application of the final certificate and issuance of the final payment certificate to be submitted together with the above to allow for swift release of the retention,’ reads the letter signed by Abala M Wanga.
