NAIROBI: It is now feared the roll out of the new Kenya Revenue Authority customs clearance software that is designed to ease international trade could be hit by delays.
The Public Procurement Administrative Review Board has stopped the awarding of tender to instal the electronic customs clearance system at KRA after one of the participating firms appealed.
“According to the Public Procurement and Disposal Act 2005, the procurement process should be stopped and no contract subject to the regulations can be signed between the Procuring Entity and the successful tenderer until the appeal has been finalised,” Henock Kirungi, Secretary, Public Procurement Administrative Review Board, said in a letter addressed to KRA Commissioner General and the Chief Executive Officer of WEBB Fontaine Group.
WEBB Fontaine Group has appealed the decision to award the tender to another firm Bull.
In a letter dated June 15, 2015, the Public Procurement Administrative Review Board has asked for a response from the Commissioner General of KRA and WEBB Fontaine Group CEO, concerning details on the tender to supply, install and commission the system and all its related modernisation services at KRA.
The body is also seeking for names of all those firms that participated in the tender, including all their contact details. All these details and documentation should reach the Board by June 20, 2015.
Although KRA was expected to roll out the new integrated Customs Management system to replace the current Simba system, starting July 1, 2015, this might not happen. After this date, all exporters are required to make their customs declarations through the new system, which is hoped will increase efficiency and transparency with regards to cross border supply of goods.
Experts maintain that further delays by Kenya in installing the Single Window Electronic Clearance System could see it lose out on revenue from cargo clearance and related trade activities within the East African common market.
TradeMark East Africa (TMEA), the financier of the project, said a suitable vendor was shortlisted and notified and as per TMEA procurement guidelines a 14-day ‘cooling off’ period was provided for bidders to submit any queries or objections through channels provided in the bid award notification document. This period lapsed on Wednesday May 13, 2015 at 3:00pm.
“The complaints panel has since reviewed all complaints submitted and communicated the outcome of their decision with the complainants. The panel is satisfied that the complaints have been addressed satisfactorily,” TMEA Chief Executive Officer Frank Matsaert said in a statement. Accordingly, he said TMEA is now entering detailed contractual negotiations with the preferred bidder.
Kenya had invited tenders for provision of a new customs software, and industry players have asked that KRA ensure the winning bid’s system can work with what is already in use across the regional trading bloc.
