Parliament orders Oracle debarred over Sh35m tender
Mercy Mwai @wangumarci
Public Accounts Committee (PAC) wants technology firm Oracle be debarred from doing business in the country following a Sh35 million restricted tender awarded to them for implementation a cash management solution for the National and County Governments.
Chaired by Ugunja Member of Parliament Opiyo Wandayi, PAC said EACC should initiate a forensic investigation into the procurement process by the National Treasury, within three months of tabling and adoption of the report.
Treasury paid Oracle to install the system which took 12 months ending 31 October 2016, at a cost of Sh35.1 million.
“If found culpable for bid rigging, Oracle and any of its associates should be debarred by PPRA from doing any business with national and county governments and any public institution for at least 10 years as per provisions of Section 41 of the PPAD Act 2015,” reads the report in part.
Lacked explanation
In the report, the MPs accused the Accounting Officer for failing to provide an explanation on what informed the use of restricted tendering for the cash management solution, a service that is neither complex nor specialized, against section 102 of the Public Procurement and Disposal (PPAD) Acct, 2015
They also wondered how a critical stakeholder like the Office of the Controller of Budget was omitted from the initial process flow of the project.
The accounting officer told them that initially, the Cash Management Business Process Flow had been developed without the Controller of Budget, but was later included hence a delay.
Eye brows were also raised after it emerged that despite three firms being recommended as accredited Oracle cash management solution suppliers, the price bid submitted by the winning supplier was significantly lower than those of the other two bidders, which stood Sh157.8 million and Sh181.4 milliion raising questions over disparities.
“The price quoted by the winning supplier was significantly lower than those quoted by the other two suppliers.
The supplier quoted a significantly low bid compared to the other bidders who are oracle accredited firms,” reads the report in part.
