Report tainting image of EAC boss now dismissed

The East African Community (EAC) has refuted a report, which links its secretary-general Liberat Mfumukeko with alleged irregularities uncovered by the Parliamentary Committee on Procurement awarded to a Kenya-based life insurance c

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A statement issued by the directorate of Corporate Affairs and Public Information said the report carried by New Times of Rwanda on Friday, claims to have obtained the documents last year implicating the secretary-general and other EAC officials in influencing the procurement of a group life insurance for the organisation’s staff.

Kampala. The East African Community (EAC) has refuted a report, which links its secretary-general Liberat Mfumukeko with alleged irregularities uncovered by the Parliamentary Committee on Procurement awarded to a Kenya-based life insurance company.

A statement issued by the directorate of Corporate Affairs and Public Information said the report carried by New Times of Rwanda on Friday, claims to have obtained the documents last year implicating the secretary-general and other EAC officials in influencing the procurement of a group life insurance for the organisation’s staff.

The contract was purportedly awarded to Liberty Life Assurance Kenya Limited, an insurance company that had come third in the bidding process and whose financial offer was $746,090 instead of Britam Life Assurance Company, also from Kenya, whose offer was $480,008.

However, the statement said Mfumukeko, as the chief accounting officer of the EAC, halted the procurement process owing to lack of a quorum and other irregularities and could not endorse the report on the procurement committee to give a contract to Britam Company as had been proposed by some members of the committee.

“The truth of the matter is that nowhere in the report of the committee is the secretary-general mentioned or accused of influencing peddling! Secondly, it was the SG, who first identified the loopholes in the procurement process for the group life insurance for the EAC staff. He raised a flag to the flawed process,” the statement says. The report on the matter was discussed on Thursday by Members of the East African Legislative Assembly (Eala) currently holding its fifth session in Kampala.

The EAC said it was greatly concerned about the Rwanda newspaper claims on the issue, insisting it was the EAC secretary-general, who acted decisively on the loopholes identified on the procurement deal instead of authorising the contract award.

“The procurement process was finalised and an award offered to Britam Life Assurance Company to cover the EAC staff for the next one year. The SG informed the Eala Assembly that he will not approve any procurement process, which is not compliant to all procedures,” the EAC secretariat said.