Bar Ngatia’s company from Sh10.2b tender, court urged

An activist has moved to court to lock out a company associated with Kenya National Chamber of Commerce and Industries (KNCCI) president Richard Ngatia from a Sh10.2 billion CT scan machines tender.

The petitioner, Francis Awino, wants the Anti-Corruption High Court to temporarily restrain the Health Cabinet Secretary from considering, evaluating or dealing in any manner with any bid submitted by Megascope Healthcare (K), a company associated with Ngatia.

Awino says he is apprehensive that the Health CS will continue issuing tenders to Megascope in an unconstitutional, illegal and unlawful manner as was previously done. “No information was advanced as to why the Ministry of Health proceeded to procure the said CT scan machines independently in gross violation of the existing procurement laws,” he says in court papers.

He wants the court to compel Health CS Susan Wafula to release documents relating to procurement of the CT scan machines.

Unusual procurement

The petitioner argues that the Health Ministry was hoodwinked into trusting that the procurement of the CT scan machines was a government-to-government procurement process, where the Government of Kenya was to pay 20 per cent of the contract sum (Sh1.7 billion) while the Chinese Government, which recommended the company that manufactures CT scan machines), was to pay Sh8.5 billion as a loan.

He adds that despite this being the information released to the public, the averse took place and the contract was awarded to Megascope and not Neusoft Medical Systems Co. Ltd, as avowed.

Awino avers that no competitive bidding for the contract was done as the tender was executed through a restrictive tendering process.

He says he wrote to the Ministry of Health seeking the information but in vain, arguing that failure to provide the information, and to publicise it, is a violation of his right to access information.

He has named the Health CS, Megascope Healthcare (K), the Attorney General, and the Ethics and Anti-Corruption Commission (EACC) as respondents in the case.

“This petition seeks to have the honourable court determine that by the continued refusal or failure to release and supply to the petitioner all the necessary information germane to procurement of 37 computed tomography (CT) scan machines, that were obtained at an embellished cost of Sh10.2 billion, is a gross violation of the Constitution,” he says in court documents.

Glaring breaches

Awino states that glaring breaches were aptly observed by the Parliamentary Public Accounts Committee (PAC) report, which said it was not clear which company the Ministry of Health’s inspection team visited to conduct due diligence on the CT scan manufacturer as the report presented to PAC alternately and variously referred to Neusoft Medical System, Pensoft Medical System and Natursoft Medical Systems.

“Upon noting the aforesaid glaring breaches and inconsistencies, the Parliamentary Public Accounts Committee (PAC) recommended immediate investigations by the relevant government organs — being the Ethics and Anti-Corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) — that were to offer the necessary recommendations to the Office of the Director of Public Prosecutions (ODPP) for its appropriate action,” he says in court documents.

Auditor’s report

According to him, the same was also captured in a report of the Auditor General for the National Government for the year 2018/2019, that no procurement documents for Neusoft Medical Systems had been provided at the time of conclusion of the audit review.

“It was noted that the available information indicated that Neusoft Medical Systems was proposed by the Government of the People’s Republic of China as a leading manufacturer of CT scans,” he claims.

The activist further notes that the Auditor-General proceeded to report that, as a consequence thereof, it was impossible to ascertain whether due diligence and fidelity to the Public Procurement and Asset Disposal Act, 2015, were observed.