“This claim has not been verified. My position as custodian of KAA who came to clean this illegal contract is that I want the money paid to the contractor (Sh4.3 billion) back. But the contractor’s position is quite opposite and therefore the need for negotiations,”
Mr Andersen told the committee chaired by Mvita MP Abdulswamad Nassir.
The KAA invalidated the tender on March 29, 2016 on the grounds that there existed a number of material differecnces between the terms of the request for proposal (RFP) and the construction contract.
KAA said the construction contract excludes 16 per cent VAT from the contract price, contrary to the requirement of the RFP.
It argued that the construction contract referred to two foreign currencies and a foreign-local split contrary to the requirement of the RFP and that the contactor commenced works under the construction contract before financing agreement had been secured to finance the project, which is also inconsistent with provisions of the RFP.
Despite the then Attorney-General Githu Muigai clearing the signing of the contract “because notification and acceptance of award had been made,” he sided with the decision of KAA to terminate the same for non-compliance with the law.
Mr Andersen told MPs that after termination of the contract, the KAA, through the Ministry of Transport, sought a legal opinion from the Attorney-General’s office on invalidation of the contract.
