Nairobi County Faces Scrutiny Over Ksh.313M Street Lights Tender Fraud: EACC Report Reveals Irregularities

Nairobi County is under intense scrutiny following a damning report by the Ethics and Anti-Corruption Commission (EACC), which has uncovered significant irregularities in the award of a Ksh.313 million tender for street lighting materials. The allegations pertain to the financial year 2022/2023, raising serious concerns about procurement processes within the county government.

The EACC’s quarterly report, covering the period from April 1, 2024, to June 30, 2024, highlights critical procedural breaches in the tendering process. The tender, which was supposed to be awarded in a transparent and competitive manner, was instead marred by violations of public procurement laws. The report details that the tender was not only advertised but also awarded to eight companies on the same day. This action contravenes the legally mandated 14-day waiting period, designed to ensure a fair and transparent procurement process.

The irregularities extend beyond timing. The contracts were signed without the involvement of an accounting officer, a key oversight role responsible for assessing and ensuring the quality and compliance of Local Purchasing Orders (LPOs). The absence of this crucial step raises questions about the validity and integrity of the procurement process, and whether the contracts met the required standards and regulations.

On June 3, 2024, the EACC forwarded its findings to the Office of the Director of Public Prosecutions (ODPP), recommending that charges be laid against individuals involved in the procurement process. The EACC’s recommendations include 14 counts of various offences, reflecting the severity of the irregularities uncovered. These include:

Six counts of corrupt practices in procurement processes.
Two counts of willful failure to comply with the law, highlighting neglect of legal obligations.
One count of uttering false documents, suggesting the potential falsification of procurement-related paperwork.
Two counts of forgery, which involve the creation of false documents or information.
One count of financial misconduct, indicating possible misuse or mismanagement of funds.
Neglecting official duty, reflecting a failure to perform required responsibilities.
Conspiracy to commit an offence of corruption, showing potential collusion in corrupt activities.

In response to these findings, the EACC has recommended the cancellation of the contracts and the initiation of disciplinary proceedings against those implicated. This move is aimed at addressing the breaches and ensuring accountability within the county government’s procurement practices.

The case took a significant turn on July 26, 2024, when the Director of Public Prosecutions (DPP) returned the file to the EACC with a recommendation for administrative action rather than criminal charges. This decision has sparked mixed reactions, with some questioning the adequacy of administrative measures compared to criminal prosecution for such serious offences. The recommendation for administrative action suggests a focus on internal disciplinary measures rather than court proceedings, potentially limiting the scope of accountability for the involved parties.

The Nairobi County government now faces the challenge of addressing these procurement issues transparently and effectively. The public and stakeholders are keenly watching to see how the county responds to the EACC’s findings and the DPP’s recommendations. Ensuring proper accountability and implementing stringent measures to prevent future irregularities will be crucial in restoring public confidence in the county’s procurement processes and governance.

As the situation unfolds, it remains imperative for Nairobi County to demonstrate commitment to reforming its procurement practices and upholding the principles of transparency and integrity. The outcome of this case will likely have significant implications for the future of public procurement in Kenya and for efforts to combat corruption at all levels of government.