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Government Terminates 170 Contracts, Exposing Taxpayers to Billions in Potential Lawsuits

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 3 December 2019.

According to the Public Procurement Regulatory Authority (PPRA), 19 county governments and five county assemblies terminated contracts with different contractors in the second quarter of this year, which ended in June. This move could lead to taxpayers facing billions of shillings in potential lawsuits.

During the quarter, only 132 State corporations submitted documents of their procurement processes to the watchdog, as required by the Public Procurement And Disposal Act. The law mandates these entities to submit reports quarterly.

PPRA investigated nine tender cases, most of which were awarded fraudulently. The cases included tenders awarded by Kenya Power, Nairobi County, National Oil Corporation, National Hospital Insurance Fund, and the Ministry of Transport.

Chairman of the Public Procurement Regulatory Board, Andrew Musangi, said the investigations arose from allegations of misconduct in procurement and disposal operations. He noted that the authority received 488 complaints during the quarter, with 355 of them resolved.

PPRA also undertook procurement audits on three State corporations, which scored dismally. The audits were on the Agricultural Development Corporation, Agricultural Finance Corporation, and the Attorney General's office.

PPRA's report highlighted that all three procuring entities scored an average of 42.1 per cent, which is considered non-compliant and a high-risk level. The office of the Attorney General and Department of Justice scored the lowest compliance score of 35.75 per cent.

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