Local security firms involved in the supply of military hardware are up in arms over an alleged move by the Kenya Ordinance Factories Corporation (KOFC) to award a Chinese firm a ksh3.1 billion contract.
The Chinese firm, China North Industries Corporation (NORINGO) has been awarded the tender to supply among other things assorted power, primers, brass strips, copper-clad steel and carbide tools used in the manufacturing of ammunition.
A letter dated June 2, 2021, to the Chinese firm urged it to confirm within the two weeks if it has accepted the offer.
“Please confirm your acceptance within 14 days with effect from the date of this letter and be prepared for signing of the contract,” the letter stated in part.
Aggrieved local firms now claim that the circumstances under which the contract was awarded to the Chinese firm were suspect and are questioning why they were overlooked since they could deliver the same materials at a lower price.
But security officials have dismissed as fake a letter purportedly written by KOFC demanding that all supplies be made through a local military logistics company.
The letter claims that the consultant form was solely appointed to act as an intermediary in the supply of KOFC inputs for all suppliers, adding that this was due to a recent change of policy.
The claims that the logistics company had been appointed were supported by a letter said to have been written to the China North Industries Corporation (NORINCO) which has for years been supplying the KOFC with products used in the production of ammunition.
The letter added that the changes were in line with the Kenyan government policy that requires procurement of ammunition production equipment and materials be done through three-year framework arrangements.
“We are pleased to advise NORINCO that there will be some policy changes in the processing of new tenders for equipment and materials required by KOFC for the production of ammunition,” the letter reads.
According to the alleged agreement, the role of the NORINCO trading company will be to enter into and service the tenders with the KOFC on behalf of NORINCO.
“In order to meet the requirements of the new tendering arrangement, KOFC would appreciate having details of a trading company nominated by NORINCO that will be participating in KOFC tenders on behalf of NORINCO,” the letter adds.
KOFC manufactures ammunition and precision tools that are mostly used by the military and usually imports the ingredients it uses to manufacture various wares from abroad and in recent days more increasingly from China.
The letter claims that Afrilog Consultants Ltd, chaired by a retired senior military officer, had been solely appointed to act as an intermediary in the supplies to KOFC.
The company is said to have privileged insider information about all the foreign suppliers of materials and goods to KOFC. It is reported that the aim is to increase the costs without necessarily adding value.
Already, there is a tussle between an Asian supplier to KOFC and the local company over reports that some of the documents used by the company were forged, and therefore illegal.
The company, founded in 2017, is a defence and security logistics consultant firm in Kenya and the East African region.
“One of the letters was not signed by the Managing Director and authorities are investigating to establish if signatures were forged, and by who,” a senior official who sought anonymity said.
