Rerec suppliers fined for electric poles tender fraud

Three firms have been fined for colluding in the procurement of concrete and treated poles at the Rural Electrification Authority.

The Competition Authority of Kenya (CAK) fined, Masherbrum Contractors- Kes203,812, Trade Winds International Kes204,896 and Sums Decorators Limited Kes143,427.

CAK initiated investigations of collusive tendering irregularities by participating firms in the tenders for Rural Electrification and Renewable Energy Corporation, with regard to procurement of concrete and treated-wooden electricity poles.

The companies opted to pay a fine rather than go through the investigations.

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“The company gave a written undertaking to desist from any anticompetitive conduct and shall put in place a competition compliance program to sensitize its leadership and key staff on competition law,” CAK said in the Friday gazette notice.

The rural electricity distributor renamed Rural Electrification and Renewable Energy Corporation- Rerec, has come under intense scrutiny over the recent past over procurement infractions.

The Ethics and Anti-Corruption Commission arrested Nofatos Ng’ang’a Munyu the former chief executive, James Muriithi the Head of Renewable Energy, Joel Omusembe -Head of Procurement and Simon Kirui Economist at Rerec on claims of awarding tenders irregularly.

Inter Tropical Timber Trading Limited also filed a suit in court alleging that Rerec illegally procured a supply of low quality, sub-standard wooden poles in collusion with the suppliers in a bid to defraud the public in line of Kes800 million.

High Court ruled the matter was rightly at the Public Procurement Regulatory Authority filed on July 22, 2019 and said it should be addressed there.

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