NYS procuremnet compromised yet again


21 Aug 2015 | by
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NYS procuremnet compromised yet again

NYS procurement compromised yet again as previous beneficiaries of millions still supplying goods The procurement process at the National Youth Service has been compromised yet again, hardly two months after revelations that hundreds of millions of shillings were lost in procurement of goods.............

NYS procurement compromised yet again as previous beneficiaries of millions still supplying goods The procurement process at the National Youth Service has been compromised yet again, hardly two months after revelations that hundreds of millions of shillings were lost in procurement of goods.Companies associated with the Director of Administration in the Ministry of Devolution Hassan Noor have been beneficiaries of the controversial restricted tendering being used after the cancellation of the latest tendering process.

Consequently , companies implicated in the previous irregular payments for procurements are still supplying goods at NYS at exorbitant prices.Restricted tendering is only used to reintroduce previous suppliers to fill the gap and continue supplying goods when no new contractor has been awarded a tender supply.Suppliers and NYS staff are alleging that there has been a lot of interference, from Noor's office in the procurement process at NYS.
After the deliberate cancellation of the 2013/2015 tender due to unknown reasons, the Ministry of Devolution extended contractors supply time until the end of January 2016 during which time companies like Fahaza Limited associated with Noor's wife and brother in law and Zeigham Enterprises LImited associated with his two brothers will supply goods to NYS under restricted tendering." He cancels all tenders because his favourite companies have not been short listed. Last time  he gave 17 companies  the tenders to supply the same item  before he cancelled it. We are under a lot of pressure to give procurement to particular companies," an official who requested for anonymity said.
NYS procurement department has now been instructed to resort to restricted tendering which means that tax payers have to pay an extra 20per cent of the value of the goods.Companies associated with the Director of Administration are consequently dictating the price at which they supply goods.For instance while a 25 kg bag of milk powder is procured at Sh 21,000 under normal tendering, it is now being bought at Sh 23,000 through restricted tendering.A fifty kilogram bag of sugar is procured at Sh 7,500 through the regular tendering but goes for SH 8,000 in restricted tendering. A 90 kg sack of beans that normally goes for Sh 7,500 in normal tendering is instead procured at Sh 8,100 under restricted tendering.

"The companies supplying the goods do not have tenders and there are no contract documents between NYS and the suppliers or other supporting documents. The suppliers just come in to claim their money and leave no documents. We are given strict orders to only deal with these people who come and just disappear,"the official privy tone process revealed.
The two companies were part beneficiaries of the Sh1.2 billion NYS payment for foodstuff, machinery and equipment according to the Integrated Financial Management Information System (IFMIS) report of January 5 to June 16 2015.
Fahaza Limited was registered on July 18 2014 with directors Hafsa Sheikh Nuh and Mohammed Amin Sheikh Nuh  of postal address number 24120-00100 Nairobi.Hafsa Sheikh Nuh is said to be the wife of the ministry of Devolution administrative secretary Hassan Noor.The two are sister and brother of the Suna East MP Junet Mohammed.
According to records Fahaza Limited received an order for beans and machines worth Sh143 million on March 10 at 6.15pm.Zeigham Enterprises Limited also of Postal address number 135 Suna with Hussein Mohamed Haji of P.O.Box 135 Suna Migori and Abdiweli Duale  Mohamed of P.O.Box 11640-00100 listed as its directors.The two companies have been receiving tenders for the supply of various goods to NYS and are among companies that received over Sh 867 million.

For instance, NYS paid Sh7,490 for a 50kg bag of sugar whereas the wholesale price in Nairobi today is between Sh4,000 to sh4,500.The NYS bought thousands of 90kg bags of green grams for Sh24,950 yet wholesale shops are selling them for Sh13,000.The IFMIS report indicates that Alpha Mercantile Limited supplied 4000 bags of sugar on February 10 worth Sh29.96 million. Bizarrely the IFMIS system was used to issue the four orders with intervals of just a few seconds.
Later in February Fresco International got orders for powder milk, green grams and maize flour worth Sh124 million.Fahaza Limited received an order for beans and machines worth Sh143 million on March 10 at 6.15pm.A further Sh650 million was spent on construction equipment, machinery, fish tanks, drills, pumps, meters, lathes, grinders, water tanks, ovens, hot plates, and engines.Other firms on the IFMIS list for NYS include Apex Projects ( Sh49million), Baltimore General Supplies ( Sh37.5 million), Kenirie Limited ( Sh46.9 million), Selumna Limited ( Sh29 million) and Dama Services ( Sh28 million)
A Turkish firm on Mombasa road in Nairobi, Tunasco Insaat Taahut Turizm, received two orders worth Sh176 million. The clothing supplies included 1,500 military uniforms, 10,500 police uniforms and 12,000 men shirts. Earlier this year Tunasco was involved in a controversy at Dubai Bank after one shareholder received a guarantee of Sh51 million for the sale of his shares which the bank did not honor. The former Dubai Bank general manager has now left the country.The director More controversy stalks procurement at the National Youth Service

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