Overpricing:Inside counties money laundering scheme

The Ethic and Anti-Corruption Commission of Kenya has exposed how counties engage in rogue tendering to benefit their proxies.

It has emerged that for one to win a contract it comes with this question: Why do you know?

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Overpricing a project is an added advantage to win tenders, showing collusion between contractors and companies bidding for tenders where projects are overpriced — and then the company wins the tender and probably the extra money shared.

Companies that developed specifications for a project were more likely to win public tenders compared to those that did not.

On sources of information for bidding opportunities, those companies getting information on bidding opportunities from friends, procurement officers, county,  CDF officers, and other suppliers led to high chances of winning public tenders.

The ethics watchdog says it is much easier to win tenders in Kisii, Nakuru, Kajiado, Kakamega, and Tharaka Nithi and Murang’a than elsewhere.

Kitui county was the hardest place to win public tenders. It was followed by Trans Nzoia, Kilifi, Nairobi, Mombasa, West Pokot, Isiolo, Kisumu, and Kirinyaga, respectively.

“The difference in price is then shared out among the corrupt individuals who include public officials and the company representatives,” a document read

“Kakamega county contributed the largest percentage (26 per cent) of contractors who learn the reserve price before they submit the bids, followed by Kilifi and Kitui, both with 12.5 per cent, and Kisumu with 11 per cent,” a document read.

A document read, “In addition, Kakamega constituted 31 per cent of cases reported by contractors as having received an estimated cost of projects from the management of public institutions.”

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