Permanent Secretary of Transport Ministry in Big Mess for Over Le1.3 Billion Bad Contract

Remove term: Ministry of Transport and Aviation Ministry of Transport and Aviation

By Amin Kef (Ranger)

It has been established that one of the unsuspecting conduits through which corrupt practices are channeled is procurement. Evidences could attest to the fact that sometimes public officials in Ministries, Departments and Agencies circumvent procurement processes with the objective of personal aggrandizement by diverting public funds meant for specific development programmes just to suit their selfish desires.

This medium came to learn of how on the 18th May 2021, the Ministry of Transport and Aviation  signed a contract with Tropical Autos worth Le1,390,000,000 for the supply of two new vehicles to be assigned to different functional units at State House.

Lamentably, although a cumulative payment to the tune of Le983,000,000 (71%) was made there has been no  evidence of the vehicles being delivered, which is contrary to the terms of the contract.

Compounding the situation was that the advance payment guarantee and the performance bond expired on the 17th August, 2021 without any evidence of renewal to ensure that the State is indemnified against potentially defaulting suppliers.

According to the Permanent Secretary and the Procurement Committee, within the Ministry of Transport and Aviation, the supplier, Tropical Autos, was to supply two vehicles for Head of Hospitality & Communications Department, State House at a total cost of One Billion, Three hundred and Ninety Million Leones (1,390,000,000). A contract was signed and advance payment of 30% was triggered upon signing.

They furthered that upon submission of bill of lading, a follow-up payment of 40% was also made adding that for the same reasons surrounding global supply chain disruptions, the supplier was unable to deliver as per contract delivery date.

It was learnt from them that several engagements were made and the supplier promised to deliver by the end of September, 2022 adding that recently, a follow-up on the status of delivery has been made.

Although they maintained that whilst the Ministry awaits response from the supplier it stands ready to follow through the process of termination in case the deadline of 30th September, 2022 was not met by the supplier the issue remains unresolved.

The Permanent Secretary and Procurement Committee promised that the Ministry was doing all it could to follow stipulated processes leading to the termination of the contract if the vehicles were not supplied against 30th September, 2022.

However, some have raised eyebrows over the issue bemoaning such a bad contract not wanting to believe that it should take up to a year and more just to procure two vehicles.

Others have expressed the view that the lame excuse given by the Permanent Secretary of disruption in the global chain of supply was just a smokescreen to divert attention from the issue.

Whether it was the Transport Ministry that erred or Tropical Autos in the whole process will be unearthed by this medium as it is in an advanced stage in its investigation of the matter.

Although it cannot be totally concluded what went amiss however, logically from the look of things it is most likely that the money has been chopped but very soon time will tell and heads will begin to roll.

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