The Ethics and Anti-Corruption Commission (EACC) on Wednesday, April 30, secured a major win after a Nairobi Court ordered a refund of Ksh25 million following a tender cancellation.
The ruling followed the cancellation of a tender for the renovation of the Kenyatta Municipal Stadium and the construction of spectator sheds in Trans Nzoia County.
In a judgment rendered by Justice Nixon Sifuna, the High Court declared the tender null and void, citing fraud and procurement irregularities.
Justice Sifuna directed the former Head of Supply Chain Management at the county and the contractor to refund the Ksh25 million paid, together with interest accrued from the date of filing the suit.
In the suit filed by EACC, the Commission called on the court to revoke the tender as the tender process was marred by fraud, irregularities and illegalities.
The Commission, in its petition, also accused the defendants of attempting to perpetrate tender fraud and misappropriate public funds allocated to the Trans Nzoia County government.
"The Plaintiff has maintained that the tender process in the impugned tenders was tainted with fraud and illegalities on the part of the defendants," the court noted.
During the hearing of the case, the Commission presented six witnesses, including senior officials from the Trans Nzoia County government and a contractor.
EACC told the court that its investigations disclosed instances of bid rigging in those tenders and that there were no tender evaluation minutes for those two tenders.
"This Court considers the subject transaction as an execution of illegality, rather than the rendering of a service for which payment should be made," the court noted.
"In cases of tainted tendering process, liability should be to the awardee, and the facilitators within the procuring entity," Justice Sifuna further stated.
While commenting after the ruling, EACC termed the judgment a significant milestone in its ongoing efforts to recover misappropriated public funds and assets.
