This archive report was first published on 12 November 2019.
On August 1, 2019, the Director of Criminal Investigations (DCI) sanctioned an investigation into a Ksh.2.7 billion tender scandal at the Kenya Ports Authority (KPA).
The probe, which has been ongoing, has implicated top officials at the ports authority, including KPA Managing Director Daniel Manduku, who is accused of authorizing irregular expenditures totaling Ksh.2.73 billion.
Manduku has dismissed the allegations, claiming they are being fronted by people interested in KPA tenders.
Investigations have revealed that Manduku and other officials breached procurement procedure in three projects, including the Makongeni Goodshed Yard, Manufacture of Concrete Barriers, and Kisumu Port Revitalization.
According to an investigations file by the Economic and Commercial Crimes Unit of the DCI, Manduku oversaw the preparation of bills of quantity for eight firms without requisition forms from the user, the inland container depot in Nairobi, for the Makongeni Goodshed Yard project.
The split of the 2100 square meters yard belonging to Kenya Railways into 9 zones and the awarding of 8 contractors the concrete works is believed to have cost the taxpayer Ksh.506 million.
Investigations also reveal that the companies were paid in full despite not completing the job, as Kenya Railways reclaimed its land and demolished the concrete.
Furthermore, in the Kisumu Port Revitalization project, Ksh.800 million was shared by seven companies despite the works having been projected to cost Ksh.100 million.
Procurement regulations were breached to award the seven companies the tenders, with detectives revealing that documents were forged to sanitize the process.
Records recovered from the KPA finance department show how the loot was shared, with Ponoma Constructions pocketing Ksh.205 million, Ricco Contractors bugging Ksh.108 million, and Ksh.129 million going to associated electricals.
