Dr. Mukhisa Kituyi, former Trade and Industry Minister, who is now the secretary-general of the United Nations Conference on Trade and Development (UNCTAD) summoned to appear before parliamentary committee over a contract he sanctioned.
According to documentation before the parliamentary committee, the contract approved by then Minister Mukhisa Kituyi was to cost the government Sh12 million but ended up costing in excess of Sh352.7 million because of irregularities. The interest accrued since 2004 following the ministry’s failure to pay Telenews Africa and Atlantic Region, an advertising agency.
The firm, owned by Simpson Senda, was hired for advertising and promotion of business opportunities in Kenya. So far, the contractor has been paid Sh285 million after he sued the ministry for failing to meet its side of the contract. Some Sh67.72 million is still pending.
On Tuesday, the National Assembly Public Accounts Committee put Tourism PS Safina Kwekwe to task over the tender after it emerged that no formal contract was signed between the ministry and the firm.
Former Auditor General Edward Ouko flagged the wasteful expenditure in his 2017-18 report. The tender was awarded by the Ministry of Trade then, where the promotion of business opportunities fell before being moved to the Ministry of Tourism.
Kwekwe told the Ugunja MP Opiyo Wandayi-led committee that they have sought direction from the Solicitor General on the possibility of transferring the matter back to the State Department of Trade.
“We are disturbed and that is why we want it conclusively addressed. It paints us in a bad light. The state department has sought direction from the Solicitor General on the possibility of transferring the matter to Trade, where we feel it rightly belongs,” she said.
Fraudulent Dealings.
In 2004, Telenews was awarded a tender to undertake consultancy work and services to advertise and promote business opportunities in the country. The project was in three phases and the firm was subsequently issued with a government local purchase order for Phase I and II which were settled.
Although the contract ended on June 9, 2004, the firm continued advertising without a formal contract. The same year in August, the Ministry of Trade and Industry wrote to the Pending Bills committee regarding non-payment of the Sh12 million claim for Telenews.
However, the Public Procurement Oversight Authority, through a letter dated April 23, 2007, observed that the matter should be referred to the Pending Bills committee.
“On December 16, 2011, the Attorney General…. observed that although there was no formal contract for phase III correspondence between Ministry of Finance, Trade and Industry and the State Law Office will be relied upon,” Kwekwe said in a response to an audit query.
Wandayi noted that the government ended up paying interest above interest because of the ministry cartels. He said they have invited the then Trade Minister Mukhisa Kituyi and Senda to shed light on the contract.
“This is a very serious matter. It is strange that a bill that was to cost the government Sh12 million has gone up to Sh300 million. This is simply fraud. This is an Anglo Leasing-like scam,” said Wandayi.
Last year while speaking on matters corruption on the Citizen TV’s Jeff Koinange Live show, Kenya’s Highest Ranking UN Official, Dr Mukhisa Kituyi, who serves as the Secretary-General of the United Nations Conference on Trade and Development, UNCTAD said that the government should;
”Make the cost of corruption so high that no one will be tempted to get into it. Proper punishment should follow through. It’s very good for the country if the world sees the real big thieves are paying for it, losing what they got through theft, losing the convenience, going to jail. That’s how other countries have dealt with corruption. I think a life sentence for corrupt individuals should do. In some countries, former presidents are rotting in jail for graft. Why should we pussyfoot when we are dealing with thieves in our own country?”
