Concerns have surfaced regarding the potential influence of personal interests among senior executives at Agro Chemicals Ltd, following the cancellation of a multimillion-dollar security tender.
The controversy centers around the evaluation committee’s recommendation to award the tender to Lindum Systems Ltd., which has raised eyebrows within the company.
The tender in question, No. ACFC/HR/02/2024/25-6, was for security services and attracted bids from 16 different firms.
After a thorough evaluation process, four bids were classified as non-responsive, leaving 12 that met the necessary criteria to advance.
Further technical evaluation saw three more firms eliminated, leaving nine contenders who surpassed the 70% pass mark and moved on to the final financial evaluation stage.
Lindum Systems Ltd. emerged as the frontrunner, having submitted the lowest bid at Ksh 10,113,924.
Despite this, the tender was unexpectedly cancelled, causing Lindum Systems Ltd. to file for a review.
This sudden move prompted many to question whether internal connections were at play, particularly among the senior management at Agro Chemicals.
The Public Procurement Administrative Board (PPAB) stepped in, directing Ashok Agrawal, the company’s accounting officer, to ensure the proper completion of the tender process.
Despite the evaluation committee’s recommendation to award the contract to Lindum Systems Ltd., concerns were raised by acting supply chain manager, Amos Mwaighonyi.
He questioned whether Lindum Systems, being relatively new to the industry, had the physical, financial, and human resources required to meet the security demands of the contract.
Mwaighonyi proposed reconsidering bids from Canon Security Ltd. and Chakra Company Ltd., both of which had also been evaluated.
However, the chairperson of the committee, David Morogo, rejected Mwaighonyi’s request on June 21, 2024, reaffirming the committee’s original findings, which had been supported by a due diligence review.
Mwaighonyi’s concerns culminated in a formal proposal to cancel the tender altogether, which was eventually endorsed by Mr. Agrawal.
On July 7, 2024, bidders were informed that the procurement process had been terminated.
In response, Lindum Systems filed an official request for review with the PPAB on August 20, 2024, seeking to challenge the termination.
The board confirmed that the tender was indeed for the 2024/2025 financial year and that the allocated budget for the contract stood at Ksh 11.5 million, with sufficient funds available to complete the procurement.
In its ruling, the PPAB annulled the termination of tender No. ACFC/HR/02/2024/25-6 and extended its validity for an additional 90 days from July 19, 2024.
Agro Chemicals Ltd. was ordered to proceed with the procurement process and conclude it within 21 days of the board’s decision.
This ruling effectively placed the spotlight on the internal handling of the tender and raised further concerns about the motivations behind the initial cancellation.
The case has drawn attention to the potential for personal interests to interfere with corporate procurement processes, with many now watching closely to see how Agro Chemicals Ltd. will handle the next steps.
The controversy has sparked a wider conversation about the transparency of tendering processes within large corporations in Kenya and the need for strict oversight to ensure fairness and accountability in public procurement.
Add Comment