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December 12, 2019 - 11:53
Cyprian Is Nyakundi
Civil Service Fraud

Jubilee Insurance Company Bribes KCAA Ksh48 Million In Latest Tender Scam

Kenya Civil Aviation Authority (KCAA) has been documented as a corrupt government agency on this blog numerous times. There’s new information; we got a document showing the recent procurement scandal.

The entity charged with looking at the safety of planes operating in Kenya has in recent years slept on the job, it is a turpid precedence that Kenyans might pay for in the near future. An increase in air accidents.

The management style of one, Captain Gilbert Kibe has been nothing more than asking for kickbacks to look the other way as planes like Fly540 killed ten Kenyans in the Aberdare ranges; others like Silverstone continues to fly with less maintenance and overloading. In fact, Fly540 is notorious for poor maintenance if their aircrafts. This was intimated to us by a source working at the Wilson Airport. The planes aren’t maintained to standards required. They are just like most of these dilapidated matatus painted with fresh coat of paint that lies to the eyes that everything is okay.

The new information the blog received include a new tender scandal for Provision of Medical Insurance Cover For Staff (KCAA-019-2019-2020)

The letter dated 22nd November, 2019, adressed to the Manding Dorector of KCAA Gilbert Kibe, copied to Insurance Regulatory Authority (IRA), Office of the Director of Public Prosecutions (ODPP), Office of the Director of Criminal Investigations (DCI), Ethics & Anti- Corruption Commission (EACC), Public Procurement Regulatory Authority (PPOA), and Ministry of Transport.

It has come to our attention that the procurement process on the referenced tender is a mockery of the bona fide gesture on the part of the majority of the bidders who diligently go about their businesses justly and in accordance with the laws of this land. More disturbing is the fact that the process has been under the supervision of one of the bidders thus further camouflaged by guising as an innocent participant in the process, whilst in cahoots with members of staff at the Kenya Civil Aviation Authority with the intention, will or craft to lure other participants and the general public that the same is a free and fair process.

Jubilee Insurance Helped Draft The Terms of Reference (ToR)

We are at pains to understand why the Kenya Civil Aviation Authority members of staff would elect to ignore the principles of our Constitution as espoused under Article 10 of the Constitution on good governance, integrity, transparency and accountability. Prior to the release of the tender document, Mr. Urbanus Muthama, an insurance agent affiliated to Jubilee Insurance Company of Kenya Limited, assisted in the drafting and finalization of the mandatory requirements listed on the published tender document. Resultantly, the tender document suits the interests of Jubilee Insurance Company of Kenya, more particular as set out under requirement No. 13 of the Mandatory Requirements listed on the tender document. It is noteworthy that currently, only Jubilee Insurance Company of Kenya meets the threshold, hence no real bidding.

The Ksh48 Million Kickback

The Kenya Civil Aviation Authority is an entity well bound by Article 73 of the Constitution which advances objectivity and impartiality in decision making, and in ensuring that decisions are not influenced by nepotism, favouritism, other improper motives or corrupt practices. In blatant disrespect to these provision of the law, a meeting was held in November, 2019 at Panari Hotel along Mombasa Road, attended by Kenya Civil Aviation Authority Human Resource Manager, Martin Kivui, representatives from Jubilee Insurance Company of Kenya Limited and the insurance company’s agent, Mr. Urbanus Muthama, among others. The subject of the meeting was proposition of a ‘kick-back’ amounting to Kshs. 48’000’000/- to Kenya Civil Aviation Authority officials should the tender be awarded to Jubilee Insurance Company of Kenya Limited.

Further Section 44 of the Anti-Corruption and Economic Crimes Act prohibits an individual from receiving or soliciting or agreeing to receiving or soliciting a benefit borne out of a bidding exercise. Moreover, Section 46 of the Anti-Corruption and Economic Crimes Act cautions against a person using his office to improperly confer a benefit on himself or anyone else. In addition to these, Section 176 of the Public Procurement and Asset Disposal Act requires a person not to unduly influence or exert pressure on any member of an opening committee evaluation committee or on any employee or agent of a procuring entity to take a particular action which favours or tends to favour a particular tenderer, neither to inappropriately influence tender evaluations and not to commit a fraudulent act. In conclusion, Section 204B of the Insurance Act prohibits a licensed person from knowingly and willfully assisting, conspiring with, or urges any person to violate the law or for any person who due to such assistance, conspiracy or urging by the said person, knowingly or willfully benefits from the proceeds derived from the use of fraud.

Based on these happenings and the further convoluted step by way of the addendum to the tender, it is our hope as law abiding citizens of this country, that your office would address the issue with the force that it deserves. The same is a clear violation of the Kenyan laws as the exercise is marred with corrupt practices by members who are entrusted to govern public funds. It is noteworthy that there is great effort by mandated bodies to rid the country of such practices and as such this exercise should be subjected to their scrutiny to prevent further graft.

We look forward to your urgent and timely action in order to arrest the fruition of these machinations.

Yours Sincerely,

Interested Party.



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