KenGen now revokes Sh52bn bid

By: JOHN NJAGI

A Sh52 billion KenGen tender was on Tuesday cancelled over claims that it was given illegally.

A letter to Rentco East Africa Ltd signed by Kengen Supply Chain Director Phillip Yego, informed the “winning bidder” of the cancellation over failure to meet the required specifications.

“The procurement has been terminated after a comprehensive review due to the following reason; the financing plan and related supporting documents were inconsistent with the objectives of the project,” said the letter seen by the Nation.

A tender committee had awarded the project for the leasing of 50 megawatts geothermal wellheads units to Rentco.

This comes even as a case filed by three losing bidders, OJS Power Machiens Limited, Transcentury Ltd and Civicon Ltd, against Rentco Ltd, is yet to be determined.

FRAUDULENT TENDER

Earlier, the Public Investment Committee (PIC) hinted that investigations into the fraudulent tender were likely to focus on the audit firm and tender committee that approved it.

This is after KenGen Chief Executive Officer Albert Mugo said a tender re-evaluation committee had unearthed “new evidence”, which would be presented to the Public Procurement Oversight Authority to decide whether the tender would be cancelled.

PIC Chairman Adan Keynan directed the committee secretariat to prepare a schedule of those set to appear before it in the face of the “new evidence”.

The Eldas MP had demanded to know why KenGen settled on Rentco though it had no experience in leasing wellheads power-generating units and was not registered to offer engineering consultancy services.

SOURCE: DAILY NATION