KAA admits irregularities in JKIA bus leasing deal
03 June 2015, 09:36
Nairobi – Acting MD for Kenya Airports Authority (KAA), Yatich Kangugo has admitted that the procurement process of leasing buses charging KES 10 million monthly by the Authority to provide transport services at the JKIA airport was marred with irregularities.
Kangugo, who appeared before the National Assembly Transport committee in the company of Transport and Infrastructure Principal Secretary, John Musonik said an internal audit conducted by the KAA board revealed that the contract had “some issues” leading to suspension of senior officials allegedly involved in the process.
“The KAA board suspended senior officers involved in the procurement of the buses following the internal audit report’s revelation showing that the process had issues, and then asked the Ethics and Anti-Corruption Commission to investigate. The matter is still under investigation and we will take action based on EACC final graft report,” said Kangugo.
Kangugo was brought to task by the Maina Kamanda-led Transport committee to explain why KAA did not purchase its own buses at KES 22 million each instead of leasing the five busesowned by Relief & Mission Logistics Limited under exorbitant monthly charges of KES 42 million each.
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“Why didn’t you seek advice from Kenya Airways to buy buses at cheaper prices of KES 22 million than leasing five buses charging millions of shillings monthly?” asked Kamanda.
The committee also questioned why KAA did not buy seven buses as recommended by Word Bank, which had provided a donation of USD 2.1 million in 2013 following the Jomo Kenyatta International Airport (JKIA) fire disaster despite the authority arguing that it resorted to leasing the buses due to insufficient funds.
“KAA is yet to utilize the World Bank donation of USD 2.1 million. The money is still intact in the bank account since the procurement process is ongoing,” assured Kangugo.
Musonik also admitted that the bus tendering process was marred with massive procurement irregularities to benefit a few individuals, and asked for thorough investigations into the matter to bring to book responsible KAA officials.
“Issues always arise on the demand or supply side of procurement processes and whenever such issues occur, my ministry seeks intervention from various bodies including this House committee and the EACC,” said Musonik.
The MPs dismissed Kangugo and his KAA team for further grilling until the committee is furnished with adequate procurement documents on the leasing of the buses.
President Uhuru Kenyatta who was officially opening Terminal 2 at JKIA said the contract was exaggerated and demanded that action be taken against officials implicated in the bus leasing scam.
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