The Cabinet Secretary for the National Treasury and Economic Planning John Mbadi has dealt a major blow to two companies after he banned them from participating in Public Procurement and Asset Disposal proceedings.
Through a Gazette notice dated Friday, November 15, Mbadi slapped the two companies with a three-year ban blocking them from participating in government contracts and asset sales.
"It is notified for the general information of the public that under the powers conferred to the Cabinet Secretary under regulation 22 (5) (k) of the Public Procurement and Asset Disposal Regulations, 2020, these companies have been debarred by the Public Procurement Regulatory Authority from participating in Public Procurement and Asset Disposal proceedings.
"On the grounds specified under section 41 (1) (d) of the Act, for three (3) years," reads part of the notice by Mbadi.
According to the CS, the two companies have been banned starting from August 20, until three years after the date of the notice publication.
The CS did not however disclose more details as to why the two firms had been banned.
The Public Procurement and Asset Disposal Act dictates that a company or someone can be banned for committing an offense relating to procurement under any other Act or Law of Kenya or any other jurisdiction.
The law also adds that one can be forbidden from breaching a contract for procurement by a public entity including poor performance.
“The Board shall debar a person from participating in procurement or asset disposal proceedings on the ground that the person has, in procurement or asset disposal proceedings, given false information about his or her qualifications,” the Act reads in part.
Defaulting on tax obligations and being found guilty of unfair serious violation of fair employment laws and practices among others form grounds for debarment according to the Act.
The move comes after the Public Procurement Regulatory Authority (PPRA) entered into a partnership with GIZ and Strathmore University to an upgraded platform to enhance accountability and openness in public procurement.
The new Public Procurement Information Platform (PPIP) is automated and used to publish tender notices and contract awards. By