The Permanent Secretary of the Trade Ministry Ambassador Julius Onen has stated that the award of a contract to a Japanese company for pre-shipment inspection for vehicles should have been re-tendered.
Mr. Onen was meeting the trade committee that is investigating the alleged irregular award of a monopoly for pre shipment inspection and verification for conformity to JEVIC for the markets of Japan S.A UK UAE and Singapore.
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JEVIC sued government in 2012 when the then Trade Minister Kahinda Otafire took a political decision to reverse the monopoly and amend the contract to include other companies.
JEVIC was awarded 2.4 billion in arbitration.
Ambassador Onen agrees that the initial procurement was flawed but when quizzed on whether the minister acted prudently in amending the JEVIC contract he says an alternative solution could have been sought.
Ambassador Onen informed the committee that JEVIC had however agreed to a contract amendment during a meeting convened to put an end to squabbles between the various companies involved in inspection.
This tallies with Otafire’s testimony before the same committee this week when he said JEVIC signed an amended contract and that the arbitration award must be contested.
