Sh60m paid to ‘fake’ bidders in NYS scam

What you need to know:

  • Mr Julius Kiplagat Kandie, a director of administration in the Ministry of Lands, said Ersatz Enterprises, Arkroad Holdings Ltd and Kalabash Food Supplies Ltd were not among the bidders pre-qualified to make supplies to the State agencies.

Three companies said to have been paid Sh60 million at the National Youth Service (NYS) were not among pre-qualified bidders, a magistrate trying 32 suspects in the scam has heard.

Mr Julius Kiplagat Kandie, a director of administration in the Ministry of Lands, said Ersatz Enterprises, Arkroad Holdings Ltd and Kalabash Food Supplies Ltd were not among the bidders pre-qualified to make supplies to the State agencies.

Giving his evidence before Principal Magistrate Peter Ooko, Mr Kandie said he was the chairman of the ministerial tender committee in 2011 when most bids for companies that procured tenders by other agencies, NYS included, were contracted.

Mr Kandie said when he chaired the committee, 14 companies’ submitted tenders to the Ministry of Public Works, supplies branch, for consideration for the supply of goods and services.

From the 14, bids by seven companies were allowed to proceed to the next stage of technical evaluation.

The witness said the supplies branch at times procured goods and services on behalf of government agencies, if they chose to do so.

He said after that, the successful bidders were then forwarded to the accounting officer, who would approve or reject the bids.

The ministry would then generate a circular, listing the pre-qualified suppliers in each category and this would be communicated to all ministries, departments and State agencies.

Ms Catherine Kamuyu and Sarah Murugu of Ersatz Enterprises, are accused of fraudulently receiving Sh26.6 million for goods not supplied.

Ms Anderine Grace Nyambura of Kalabash Food Supplies, allegedly received Sh9 million from NYS, while Mr Peter Wagurah Kimani and Anthony Makara Wamiti of Arkroad Holdings Ltd allegedly received Sh24.8 million.

He said the companies whose bids were not responsive were notified and given reasons for rejection.