CASE STUDIES

Case 1.The Director of Public Prosecutions has

written to the Ethics and Anti-Corruption
Commission stating that he had ordered the
arrest and prosecution of Central bank CEO for
abuse of office.
• The alleged abuse of office is in connection
with a Sh1.2 billion security systems tender
awarded to Horsebridge Networks and which
the office of the DPP says cost the tax-payer
an extra Sh400 million as it was not the lowest
bid.
 CASE STUDIES
• The tender committee however accused THE
ceo of interfering in the process and imposing
Horsebridge Networks Systems East Africa
Limited on them.
 Case Studies/PP Administrative Review Board

Case 2. Procurement board dismisses SGR

tender case
• Team Engineering had sought an
administrative review of the tender, basing its
case on two premises: that the procuring
entity, Kenya Railways Corporation had not
informed it of the award to the winning
tenderer and that the winning bidder had a
relationship with the SGR’s contractor: China
Road and Bridge Corporation ( CRBC)
 Case Studies/PP Administrative Review Board
Case 3. The Public Procurement Administrative
Review Board has cancelled the school laptop
tender that had been awarded to India’s Olive
Technologies, putting to a halt the first phase
of the project that would have cost Ksh 24.6
billion.
• The Board ruled that Olive – which was
awarded the tender to supply 40,000 laptops
in February - lacks the financial capability to
implement the project and also quoted Ksh
1.4 billion above the stipulated threshold.
 Case Studies/PP Administrative
Review Board Cont’d
• The procurement review board further noted
that Olive did not meet the required annual
turnover of Kshs 8 billion for the last three
years preceding the awarding of the tender.
• The board added that Olive did not meet
requirements of an Original Equipment
Manufacturer (OEM), which was also against
the tender awarding requirements.
Legal Requirement/ Public Procuring Entities (PE)

• PE are bound by the • -----------------------------

Public Procurement and • -----------------------------
Disposal Act 2005 • -----------------------------
• The Act came into • -----------------------------
operation through the
Public Procurement and • -----------------------------
Disposal Regulations • -----------------------------
2006 • -----------------------------
• The Public Procurement • -----------------------------
and Disposal General
Manual
 Legal Requirement ( Cont’d)
• Manual for • -----------------------------
Procurement and • -----------------------------
Management of • -----------------------------
Projects
• -----------------------------
• Procurement Manual
for Works • -----------------------------
• Public Procurement • -----------------------------
Manual for Schools • -----------------------------
and Colleges • -----------------------------
Legal Requirement – procurement and
Disposal General Manual
• To help PE to comply • -----------------------------
with procurement law, • -----------------------------
regulations, std. bidding • -----------------------------
documents and
circulars issued by PPOA • -----------------------------
• The Manual details • -----------------------------
what the procurement • -----------------------------
cycle shall include • -----------------------------
• -----------------------------
Legal Requirement- General Principles
• Full compliance with the • -----------------------------
act and regulations • -----------------------------
• Being ethical in • -----------------------------
procurement- avoidance • -----------------------------
of collusion and conflict
of interest • -----------------------------
• Offering every bidder • -----------------------------
equal opportunity • -----------------------------
• Confidentiality through • -----------------------------
out the tendering process • -----------------------------
Legal Requirement- General Principles
(Cont’d)
• Avoidance of corrupt • -----------------------------
and fraudulent • -----------------------------
practices • -----------------------------
• Promotion of • -----------------------------
transparency
• -----------------------------
• Application of
inappropriate influence • -----------------------------
at any stage of the • -----------------------------
procurement process • -----------------------------
• -----------------------------
 DISPUTE RESOLUTION
• A dispute is a -------------------------------
disagreement or a -------------------------------
quarrel over an issue, -----------------------------------
resources etc --------------------------------
• An argument between -------------------------------
two or more people --------------------------------
,between a group of
people in an
organization
 DIMENSIONS IN CONFLICT
RESOLUTION
• Conflict within the
individual -----------------------------------
 Occurs because of -----------------------------------
discrepancy between an -----------------------------------
individuals real ability and
the ability needed to hold -----------------------------------
his present position.
 Can be caused by the ----------------------------------
different positions, roles -----------------------------------
and responsibilities within
the organization
 Presence of too many -----------------------------------
ambiguities contained in an -----------------------------------
individuals position. -----------------------------------
 dimensions in conflict resolution
cont’d
• Inter Personal Conflicts
-----------------------------------
Conflict between a -----------------------------------
person and another -----------------------------------
person in one -----------------------------------
organization or -----------------------------------
between one person ----------------------------------
and a group in the same -----------------------------------
organization
Leads to delay in -----------------------------------
decision making and -----------------------------------
poor performance of -----------------------------------
tasks due to tension
 dimensions in conflict resolution
cont’d
• Inter Personal Conflicts
-----------------------------------
Conflict between a -----------------------------------
person and another -----------------------------------
person in one -----------------------------------
organization or -----------------------------------
between one person ----------------------------------
and a group in the same -----------------------------------
organization
Leads to delay in -----------------------------------
decision making and -----------------------------------
poor performance of -----------------------------------
tasks due to tension
 dimensions in conflict resolution
cont’d
• Inter group Conflict
-----------------------------------
 Arises due to the rational -----------------------------------
goals of individuals or -----------------------------------
groups
 Distinct groups of -----------------------------------
individuals are at odds -----------------------------------
----------------------------------
with one another -----------------------------------
 Due to competition for
valued material ,resources ------------------------------------
or social rewards like -----------------------------------
respect, esteem or -----------------------------------
positions of power -----------------------------------
 dimensions in conflict resolution
cont’d
• Inter Organizational Conflict
-----------------------------------
 Conflicts that arise between -----------------------------------
different organizations. -----------------------------------
 Usually because of
-----------------------------------
competition between the two
 It is a positive kind of conflict -----------------------------------
as it enhances better services ----------------------------------
and enhances productivity -----------------------------------
rather than reduction in ------------------------------------
performance. -----------------------------------
 It is healthy and usually -----------------------------------
remains unresolved for a long
-----------------------------------
time
 SOURCES OF CONFLICT
• Informational Factors – Lack of
proper communication channels, -------------------------------------
-------------------------------------
• Perceptual Factors – Exist when -------------------------------------
people have different images of
the same stimulus. Same basic -------------------------------------
facts may produce distinctive
pictures in the minds of different -------------------------------------
persons. -------------------------------------
--------------------------------------
• Role factors – Influence the
source of conflict because each ------------------------------------
individual occupies a certain ------------------------------------
position in society or in the -------------------------------------
organisation.This may put
constraints on him if there is a ------------------------------------
negative discussion related to his
role.
 ASPECTS OF CONFLICT
Negative
-------------------------------------
• Interferes with decision making -------------------------------------
• Results in unnecessary -------------------------------------
competition
• Endangers the successful -------------------------------------
expansion of an organization
-------------------------------------
Positive -------------------------------------
• Provides opportunity for --------------------------------------
expression of oneself and
grievances are heard ------------------------------------
------------------------------------
• Opportunity for review of existing
-------------------------------------
positions
• Strengthens relationships once ------------------------------------
resolved
• Enhances competition in an
 APPPROACHES TO CONFLICT
RESOLUTION
• “Conflict is inevitable ;agreement
is not possible” – It may result in -------------------------------------
-------------------------------------
a win-lose power struggle.
-------------------------------------
Unfortunately the main issues of
conflict are hardly resolved. -------------------------------------
• “Conflict may not be inevitable
and agreement is not possible.”- -------------------------------------
Parties may decide to withdraw -------------------------------------
from interaction or become --------------------------------------
indifferent to the problem.
------------------------------------
Provides temporary satisfaction ------------------------------------
and benefits to some, but doesn’t -------------------------------------
lead to any meaningful resolution
of conflict ------------------------------------
 Approaches to conflict resolution
cont’d
• “Although conflict may arise in
various situations ,agreement is -------------------------------------
-------------------------------------
possible”-the most positive
-------------------------------------
approach. Parties recognize there
is need to resolve the conflict. -------------------------------------
Problem is first identified ,means
to resolve it e.g negotiation and -------------------------------------
Frank bargaining. -------------------------------------
Other methods include --------------------------------------
avoidance, repression,
------------------------------------
sharpening into conflict and ------------------------------------
transformation into problem -------------------------------------
solving.
------------------------------------
 Dispute Resolution
• Disputes can occur; • -----------------------------
i. During the tendering • -----------------------------
process • -----------------------------
ii. During contract • -----------------------------
execution between • -----------------------------
the PE and the service
provider • -----------------------------
• -----------------------------
• -----------------------------
• -----------------------------
 Dispute Resolution- During the
Tendering Process
• The director PPOA may • -----------------------------
order an investigation • -----------------------------
of any procurement • -----------------------------
process in the event of
breach of the law • -----------------------------
• Any bidder who feels a • -----------------------------
breach of the law has • -----------------------------
occurred may apply to • -----------------------------
the Administrative • -----------------------------
Review Board
 Dispute Resolution- During the
Tendering Process ( Cont’d)
• A bidder may make an • -----------------------------
application for review • -----------------------------
as stipulated in the • -----------------------------
regulations
• -----------------------------
• The application must be
made within the 7 days • -----------------------------
of the letter of • -----------------------------
notification • -----------------------------
• The regulations have • -----------------------------
matters that will not be • -----------------------------
subject for review
 Dispute Resolution- During the
Contract Execution
• A contract shall have • -----------------------------
the contract sum, • -----------------------------
commencement and • -----------------------------
completion dates
• -----------------------------
• It shall have general and
specific conditions of • -----------------------------
contract • -----------------------------
• It shall have conflict • -----------------------------
resolution mechanisms • -----------------------------
• -----------------------------
 Conflict Resolution Mechanisms
• A contract shall have in
the conditions of
contract conflict
resolution Mechanisms
1. Mediation; this is the
first option and the
mediator may be the
PM or external agreed
upon by both parties
 Conflict Resolution Mechanisms
Cont’d
2. Arbitration; if mediation
fails then the arbitration
option is invoked as per
the conditions of
contract
3. Court proceedings - are
often avoided due to
complexities of projects
and the lengthy
process.
 ARBITRATION
 A consensual process -------------------------------
enforced by law, -------------------------------
available to be adopted -------------------------------
by agreement between
two parties to a civil -------------------------------
dispute for final binding, -------------------------------
settlement in private of --------------------------------
their dispute
 Arbitration cont’d
• Arbitration is suitable -----------------------------
when settlement by -----------------------------
Negotiation has been -----------------------------
made and failed arising
from matters under -----------------------------
agreement or contract -----------------------------
 PREREQUISITES
i. An agreement between -------------------------------
the parties which -------------------------------
contains a clause on -------------------------------
arbitration in writing.
 An ad hoc arbitration
clause to be inserted in -------------------------------
the agreement when -------------------------------
the dispute arises -------------------------------
 Prerequisites cont’d
ii. A dispute or -------------------------------
difference between -------------------------------
the parties to the -------------------------------
agreement and this
disputes must be -------------------------------
within the clause of -------------------------------
arbitration in the
agreement.
 PROCEDURE OF ARBITRATION
I. Give the notice to refer- -------------------------------
After ratification of the -------------------------------
prerequisites, -------------------------------
arbitration may be -------------------------------
initiated by either of
the party servicing -------------------------------
notice to the other -------------------------------
party .e.g. A(Claimant) -------------------------------
and B(Respondent)
 Procedure of arbitration cont’d
ii. A list of the matters -------------------------------
which the issuing -------------------------------
party wishes to be -------------------------------
referred to the
arbitrator – Matters , -------------------------------
dates issues raised, -------------------------------
the progress, the -------------------------------
disagreements, -------------------------------
stalemate.
 Procedure of arbitration cont’d
iii. Appointment of -------------------------------
Arbitrator – Either -------------------------------
party serves the other -------------------------------
a notice to concur and
listing therein the -------------------------------
names of 3 or more -------------------------------
persons referred to as -------------------------------
arbitrator, that is, -------------------------------
after issuing a notice
to refer.
 Procedure of arbitration cont’d
iv.Preliminary hearings -------------------------------
and order of direction- -------------------------------
Procedures and -------------------------------
directions are given by -------------------------------
the arbitrator after
his appointment of -------------------------------
and acceptance. The -------------------------------
parties are summoned -------------------------------
for preliminary -------------------------------
meetings concerning
the arbitration process --------------------------------
 Procedure of arbitration cont’d
v. Pleadings – Views of each party
concerning the dispute are heard.
A summary of evidence is
submitted by each party and
presented to the arbitrator.
Pleadings include ; the claimant
point of claim, respondent’s point
of reference, defense of the
claimant to the respondents claim,
Counter claim from the
respondent, Points of defense by
the claimant to the counter claim,
Point of reply by the respondent to
the defense, Request for further
particulars and replies from either
party.No evidence should be
included here.
 Procedure of arbitration cont’d
vi.Discovery of -------------------------------
documents-After -------------------------------
closure of pleadings, -------------------------------
each Party should -------------------------------
disclose to the other -------------------------------
documents in its -------------------------------
possession relevant -------------------------------
to the issues in -------------------------------
arbitration --------------------------------
 Procedure of arbitration cont’d
viii.Inter occurring -------------------------------
meeting prior to -------------------------------
hearing – a meeting -------------------------------
called by the -------------------------------
arbitrator to identify -------------------------------
or clarify issues to be -------------------------------
decided and the -------------------------------
procedures to be -------------------------------
adopted. --------------------------------
 Procedure of arbitration cont’d
ix.Conclusion – Basing -----------------------------
on the evidence -----------------------------
availed, the -----------------------------
arbitrators verdict -----------------------------
is final.
 Assignment 2
Code 4.2: Using an Code 5.2: An electrical sub-
contractor was to lay an
example of your
underground cable from the
own choice, discuss generator house to the utility
the measures taken point about 300 m away. It
was however discovered that
to improve work
the cable was laid without
performance. placing “hatari” tiles as
indicated in the BoQ’s. How
best would you handle this
dispute through mediation,
arbitration or court process?