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Procurement &Disposal of AssetsAnti-fraud Policy

2 Procurement & Disposal Of Assets Anti-fraud Policy 2021 |

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(UNCONTROLLED DOCUMENT)

(THIS PROCUREMENT & DISPOSAL OF ASSETSANTI-FRAUD POLICY SHALL COME INTO FORCE ON

FOR GUIDANCE AND ADHERENCE BY EMPLOYEES OF KENYA PORTS AUTHORITYAND OTHER STAKEHOLDERS AND NOT FOR PUBLICATION

MADE PURSUANT TO THE LEADERSHIP AND INTEGRITY ACT 2012 ANDPUBLIC OFFICERS ETHICS ACT 2003, LAWS OF KENYA

ISO 9001:2015 Certified

Procurement & Disposal Of Assets Anti-fraud Policy 2021

TH FEBRUARY 2021)12

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TABLE OF CONTENTS

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FOREWORD ______________________________________________________________ABBREVIATIONS__________________________________________________________ DEFINITION OF TERMS ____________________________________________________1.0 INTRODUCTION _______________________________________________________1.2 KEY SERVICES OFFERED BY THE AUTHORITY____________________________1.3 WHO WE ARE__________________________________________________________1.5 KPA VISION, MISSION AND VALUES _____________________________________1.5 KPA’S MANDATE ______________________________________________________1.6 TO WHOM THE AUTHORITY IS RESPONSIBLE ____________________________2.0 POLICY STATEMENT ___________________________________________________3.0 APPLICATION OF THE POLICY __________________________________________4.0 POLICY OBJECTIVE ____________________________________________________ 5.0 LEGISLATIVE AND ADMINISTRATIVE FRAMEWORK _______________________6.0 POLICY PRINCIPLE ____________________________________________________7.0 UNETHICAL PRACTICES IN PROCUREMENT AND ASSET DISPOSAL PROCESS ___________________________________________8.0 CONFLICT OF INTEREST________________________________________________9.0 PROCUREMENT AND ASSET DISPOSAL INTEGRITY CONTROLS ________________________________________________9.2 APPLICATION OF THE PRINCIPLES ______________________________________ 9.3 PUBLIC PROCUREMENT & ASSET DISPOSAL ETIQUETTES ________________ 9.4 ROLES AND RESPONSIBILITIES ________________________________________ 9.4.4 PROCUREMENT AND ASSET DISPOSAL PARTIES _______________________ 10.0 PROCUREMENT AND ASSET DISPOSAL FRAUD RESPONSE PLAN _____________________________________________ 10.2 OBLIGATIONS TO REPORT PROCUREMENT AND ASSET DISPOSAL FRAUDS: ___________________________________________ 11.0 INVESTIGATION RESPONSIBILITIES ___________________________________ 11.1 AUTHORITY TO INVESTIGATE PROCUREMENT IRREGULARITIES _____________________________________ 11.2 INVESTIGATION STANDARDS _________________________________________11.3 REFERRALS TO AND ASSISTANCE FROM OTHER AGENCIES _____________11.4 AUTHORITY TO ACCESS AND USE INFORMATION _______________________ 11.5 WHISTLEBLOWER PROTECTION _______________________________________ 12.0 BREACH OF THE POLICY PROVISIONS _________________________________ 13.0 SYSTEM EXAMINATION REVIEW _______________________________________13.1 SPECIFIC OBJECTIVES ________________________________________________ 13.2 RATIONALE __________________________________________________________ 14.0 REVIEW OF POLICY ___________________________________________________ 15.0 EFFECTIVE DATE _____________________________________________________ Appendix i _______________________________________________________________Appendix ii _______________________________________________________________ Appendix iii ______________________________________________________________

Procurement & Disposal Of Assets Anti-fraud Policy 2021 |

5 | Procurement & Disposal Of Assets Anti-fraud Policy 2021

FOREWORD

RASHID K. SALIM IEng.IMar EngAg. MANAGING DIRECTOR

Kenya Ports Authority is committed to bolstering ethical climate in the Authority by entrenching integrity controls in business processes. This procurement anti-fraud policy, therefore, outlines the standard of behaviours expected of Kenya Ports Authority employees and stakeholders while participating in procurement and asset disposal activities.

Procurement and asset disposal fraud constitutes unethical behaviour and affects functions and operations of the Authority and have the effect of increasing the cost of doing business, among other challenges which negatively impacts on the successful realization of Authority’s vision.

The Authority has established key interventions to tackle the vices. These include: the establishment of the Ethics and Integrity Department; appointment and training of Departmental Integrity Assurance Officers with the mandate to create awareness and encourage reporting of the vice; formulation of integrity support policies and encouraging the reporting of corruption incidences through different channels, including email-address ([email protected]) and automation of processes which in turn minimizes human intervention and increases transparency and accountability.

The Board of Directors and entire workforce are committed to the full adherence to provisions of this policy and supports all measures necessary to ensure that it is enforced. Employees and stakeholders are expected to read and understand this policy, uphold the rules and standards established in it.

Failure to adhere to this policy attracts penalties in accordance with the Disciplinary Handbook, Human Resources Manual and relevant laws and regulations in the country.

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ABBREVIATIONS

COI: Conflict of interest

KPA: Kenya Ports Authority

PAD: Procurement Asset Disposal

OECD: Organisation for Economic Co-operation and Development

TOR: Terms of reference


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DEFINITION OF TERMS ContractorIs a person who enters a procurement contract with a procuring entity, and includes the

main contractor.

DisposalMeans the divestiture of public assets, including intellectual and proprietary rights and

goodwill and other rights of a procuring entity by any means including sale, rental, lease,

franchise, auction, or any combination however classified.

Fraudulent practiceIs a misrepresentation of fact in order to influence a procurement or disposal process or

the exercise of a contract to the detriment of the procuring entity or the tenderer or the

contractor.

Public ProcurementIs procurement by procuring entities using public funds.

ProcurementAcquisition by purchase, rental, lease, hire purchase, license, tenancy, franchise, or by any

other contractual means of any type of works, assets, services or goods including

livestock or any combination and includes advisory, planning and processing in the supply

chain system.

TenderRefers to an offer in writing by a candidate to supply goods, services or works at a price;

or to acquire or dispose stores, equipment or other assets at a price, pursuant to an

invitation to tender, request for quotation or proposal by a procuring entity.

User departmentThe unit of a procuring entity that requisitions the goods, works or services being

procured.

AuthorityRefers to Kenya Ports Authority as defined in the KPA Act.1978.


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1.0 INTRODUCTIONKenya Ports Authority (The Authority) is a statutory body under the Ministry of Transport

and Infrastructure. It is established under section 3 of the Kenya Ports Authority Act, Cap

391 of the Laws of Kenya.

The Authority is responsible for the construction, operation and management of seaports

and Inland Waterways, Inland Container Depots in Nairobi, Kisumu, Naivasha, Eldoret and

the Liaison office in Kampala, Rwanda and Burundi.

1.1 KEY SERVICES OFFERED BY THE AUTHORITY Among the main services offered by the Authority are marine services (comprising of

Pilotage, Towage, Mooring, Dry-docking, Maintenance of Aids to Navigation and

Maintenance of the access channel/fairway and turning basin), stevedoring and shore

handling services (comprising of Cargo handling services for containers, general cargo,

dry bulk and bulk liquids) and reception of cruise vessels which entails facilitation of

cruise tourism.

1.2 WHO WE ARE Kenya Ports Authority (KPA) is a statutory body under the Ministry of Transport. It was

established by an Act of Parliament on 20th January 1978 with the mandate to maintain,

operate, improve, and regulate all scheduled seaports situated along Kenya's coastline.

The Authority is responsible for the operation and management of the Port of Mombasa,

other small scheduled ports, Inland Container Depots and liaison offices in Kampala,

Kigali and Bujumbura that caters for all transit countries.

1.3 VISION, MISSION AND VALUES

VisionWorld Class Ports of Choice

MissionTo provide efficient and competitive port services to facilitate global trade.



1.4 KPA’S MANDATETo maintain, operate, improve, and regulate all scheduled Ports. To realize its mandate,

the Authority strives to conduct its activities with the highest possible ethical standards.

1.5 KPA’S VALUES

Customer focus: Honouring of commitments to one another, the community, and customers. Service

excellence is key to the Authority’s operations. The Authority strive to provide outstanding

service and value to each other and to its customers.

Integrity: Business is to be conducted with the highest ethical standards and fairness is to be

upheld, as well as honesty, professionalism, and transparency in all its undertakings.

Teamwork: The Authority embraces team spirit in all its undertakings. The employees are capable,

high-performing people who appreciate the privilege of public service. They practice open

communication, innovation, collaboration, and transparency in all interactions.

Innovation: The Authority will invest and leverage on research, development and innovation to ensure

that the Kenya Ports stay ahead of the curve in improving efficiency in their processes.

Care: The Authority cares for its staff, the communities around it and is sensitive to the

environment. The Authority embraces the richness of a diverse workplace and support

employee development. It encourages a healthy and diverse organization that enhances

individual’s contributions locally and globally. It is a responsible steward of community

resources and the environment. The Authority exercise care and wisdom in the use of

both financial and natural resources.

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1.6 TO WHOM THE AUTHORITY IS RESPONSIBLEA successful business is measured by amongst other things, its relationship with its

shareholders, customers, employees, business partners and the community. The Authori-

ty aims to tap into the synergy of these relationships and to create a collectively beneficial

business environment. Its responsibilities are identified as follows: -

ShareholdersTo safeguard shareholders’ investment and to create and add economic value.

CustomersTo satisfy the unique needs of its customers by offering innovation, flexibility and service

that create value for their businesses as their commercial success is, in turn, our success.

EmployeesTo recognize that employees are the Authority’s greatest asset and to ensure that they

have a safe and conducive working environment with equitable and competitive terms and

conditions of service. The Authority promotes a culture of trust, the development and best

use of human talent and resources.

Business PartnersTo cultivate meaningful, mutually beneficial, and successful long-term relationship with

partners, suppliers and contractors based on trust and understanding.

CommunityTo be a responsible corporate citizen and conduct business in a manner that promotes

sustainable development for both the Authority and the community. This involves full

compliance with laws and regulatory authorities, respect for local culture and giving due

consideration to social and environmental issues in all commercial decisions.


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2.0 POLICY STATEMENT The Procurement and Asset Disposal anti-fraud (PAD) policy is established to facilitate

the development of controls that will aid in the detection and prevention of procurement

and asset disposal fraud against Authority. It is the intent of the Authority to promote

highest ethical and professional standards during procurement and asset disposal

activities.

3.0 APPLICATION OF THE POLICY This policy applies to the Board, all KPA employees, suppliers, consultants’ contractors,

and agents who are directly or indirectly involved in the procurement and assets disposal

for or on behalf of KPA.

4.0 POLICY OBJECTIVE The objective of this Policy is to put in place effective Procurement and disposal of asset

Integrity Controls and ensuring that KPA employees and other stakeholders are aware of

their responsibilities for the detection and prevention of Procurement fraud and for

establishing procedures to prevent fraud and/or detect fraud from occurring.


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5.0 LEGISLATIVE AND ADMINISTRATIVE FRAMEWORK.

This policy should be read together with the following statutes and statutory instruments

which anchor promotion of principles of good governance.

Constitution of Kenya 2010

Public Officers Ethics Act 2003

Public Procurement and Asset Disposal Act 2015

Public Procurement and Disposal Regulation 2020

Anti- Corruption and Economic Crime Act 2003

Public Financial Management Act 2012

Leadership and Integrity Act 2012 &15

Kenya Institute of Supplies Management Code of Ethics

KPA Procurement Supplies Manual 2017

KPA Human Resource Manual 2017

KPA Code of Ethics and Conduct

KPA Gift, entertainment, and hospitality policy

KPA Board Code of Conduct

KPA Conflict of Interest Policy

KPA Anti-Corruption Policy

KPA Whistle Blowing Policy

OECD Recommendation on fighting Bid Rigging in Public Procurement

Recommendations of OECD on Public Procurement

6.0 POLICY PRINCIPLEThis policy sets out the principles that govern the behavior and actions of all parties that

are involved in procurement and asset disposal in the Authority.

7.0 UNETHICAL PRACTICES IN PROCUREMENT AND ASSET DISPOSAL PROCESSThe following are common unethical practices in the procurement and asset disposal

cycle, the list is not exhaustive:


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7.1 GENERAL UNETHICAL PRACTICES.Submission of fictitious procurement needs and budget by the user department

Failure by employees to declare existence of conflict of interest during initiation of

the procurement process (preparation of budget, TOR/ bid specifications,

purchase requisition).

Bid tailoring (narrow, broad, vague) to give unfair advantage to other vendors

Leaking of TOR, bid specification and evaluation criteria to preferred bidder to

give unfair advantage to others.

Splitting of a single contract or bid into two or more components, each below the

relevant procurement thresholds to avoid upper approval (scrutiny) hence facilitate

sole source or less competitive contract awards. This, however, is not applicable

to unbundling of procurement in preference and reservation group such as citizen

contractors, disadvantaged groups, small and medium enterprises in public

procurement.

Selection of advertisement method that limit opportunity for tender competition

Deliberate delays in advertising tenders for expired contracts to avoid subjecting

current vendor to another competing bidding.

Selection of inappropriate bidder and submission of biased evaluation report by

tender evaluation committee.

Misrepresentation of facts in the professional opinion report in order to reject the

winning bidder and to favor preferred vendors.

Demand bribery & economic extortion by employees facilitating procurement

processes.

Denying the successful bid winner the award letter under pretext of

noncompliance with bid requirements.

Accepting Hospitality, gifts, inducement and gratuity with apparent motive to

influence procurement process.

Skewed concession in favor of successful bidders during tender negotiation.

Unjustified contract amendment, extension or variation from bid documents.


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Changing/varying order for less/more expensive products, services or works

against the scope, price and other contract terms.

Receiving, accepting, and recommending payment for; non-existing, substandard

goods/services/works by inspection & acceptance team/ receiving personnel.

Theft of stock items for purposes of resupplying to the Authority and other motives

Survey of serviceable assets for disposal when they still have economical value.

Undervaluation of assets marked for disposal.

8.0 CONFLICT OF INTEREST Skewed appointment of committee members in order to serve certain personal or

private interest

Politically exposed persons influence on tender process.

Awarding or influencing the award of contract to oneself, spouse or relative,

business associate, close friends or corporation, partnership or other body in

which the officer has an interest.

Participating in a tender in which the officer has interest or an appearance

impropriety.

Engaging in bid rigging to favor oneself or another person.

Inflating contract prices to favor oneself or another person.

Approving inflated invoices or paying for works or services and goods not

delivered.

Preparation of procurement plan/budget/TOR /Specification with interest in mind.


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9.0 PROCUREMENT AND ASSET DISPOSAL INTEGRITY CONTROLS

9.1CORE PRINCIPLES OF PUBLIC PROCUREMENT AND ASSET DISPOSAL The Authority shall be guided by the following values and principles of the Constitution

and relevant legislation during public procurement and asset disposal processes:

The national values and principles provided for under article 10 of the kenya

constitution;

The equality and freedom from discrimination provided for under article 27 of the

Kenya constitution;

Affirmative action programmes provided for under articles 55 and 56 of the Kenya

constitution;

Principles of integrity under the leadership and integrity act, 2012 (no. 19 of

2012);

The principles of public finance under article 201 of the kenya constitution;

The values and principles of public service as provided for under article 232 of The

kenya constitution;

Principles governing the procurement profession and international norms;

Maximization of value for money;

Promotion of local industry, sustainable development, and protection of the

Environment; and

Promotion of citizen contractors.

9.2 APPLICATION OF THE PRINCIPLESThis Principles applies to the following processes:

1. Procurement planning

2. Procurement processing;

3. Inventory and asset management;

4. Disposal of assets

5. Contract management


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9.3 PUBLIC PROCUREMENT & ASSET DISPOSAL ETIQUETTESAll employees participating in procurement and asset disposal process, should:

Act fairly, impartially and with integrity during the undertakings.

Be accountable and transparent during the undertakings.

Act lawfully during procurement undertakings.

Identify, declare, and manage conflicts of interest during procurement

undertakings and signing of integrity pacts.

Not disclose the confidential information to unauthorized party.

Not have contact with bidders for the duration of the Procurement and asset

disposal Process.

Report immediately all unethical practices noted to MD and Ethics and Integrity

Office.

9.4 ROLES AND RESPONSIBILITIES

9.4.1 MANAGING DIRECTOR.Provide tone at the top by offering stewardship on procurement and asset disposal (PAD)

ethical climate at the Authority. This will include among others:

Recommends PAD anti-fraud policy to the Board for approval.

Issuing procurement integrity control guidelines from time to time.

Approving disciplinary recommendations for violation of procurement and asset

disposal regulations.

Oversee the implementation of PAD fraud controls.


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9.4.2 ETHICS AND INTEGRITY OFFICEDevelop & review procurement and asset disposal anti-fraud policy.

Provide procurement and asset disposal anti-fraud advisory opinions to

management and employees.

Investigate alleged procurement and asset disposal misconducts and advise

management.

Guide on procurement and asset disposal ethics and integrity risk management

Protect employees and suppliers from the risks of retaliation from the Authority for

raising in good faith a concern about suspected procurement and asset disposal

fraud.

Identify areas of the PAD activities that are potentially prone to unethical practices.

Create PAD fraud awareness to employees and suppliers.

To undertake review of PAD processes upon detection of breaches and control

weaknesses.

9.4.3 INTERNAL AUDIT AND RISK MANAGEMENT OFFICE: Provide reasonable assurance to management that procurement controls have

been implemented and are operating effectively and efficiently.

Audit contracts, controls and procedures for any indication of PAD unethical

practices, which might be indicated by:

Non-compliance with procurement integrity requirements.

Failure by employees to comply with the Authority PAD anti-fraud policy

requirements.

Failure by suppliers to comply with contract terms.

Gaps in implementation of PPAD Act, regulations and internal policies.


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9.4.4 PROCUREMENT AND ASSET DISPOSAL PARTIES

a) Procurement & Supplies Department Implement and enforce the PPAD Act 2015, regulation 2020 and relevant internal

policies.

Ensuring integrity pacts are signed by relevant parties. The format of integrity

pacts are appended to this policy.

Identify and mitigate PAD unethical risks.

Report unethical practices to MD and Ethics and Integrity Office.

Reporting any existing or potential conflicts of interest that they may be aware of

to the Ethics and Integrity Office, regardless of whether there has been an act of

impropriety or not.

Undertake bidder’s due diligence during the bidding process.

Undertake independent market research before evaluation and negotiation

processes.

Provide professional guidelines to the tender committee before the exercise

commence; among the items to be briefed but not limited, includes:

a) Tender methodology adopted.

b) Tender descriptions including evaluation criteria.

c) Unethical issues that may arise during committee assignments.

d) Regulations underpinning committee assignments.

e) Committee expected deliverables.

Monitor, review and implement control measures geared to mitigate procurement

and asset disposal ethics and integrity risks.

Initiate the disciplinary actions against employees breaching procurement and

asset disposal laws, regulations and internal policies.

Ensure procurement employees are sensitized on Procurement and asset disposal

anti-fraud controls.


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b) Tender Evaluation Committee Identify unethical practices encountered during assignment and report to Ethics

and Integrity Office and Head of Procurement and Suppliers.

To sign integrity pact (appendix i) and disclose conflict of interest if any.

To ensure that there is non-disclosure of tender information on the course of the

engagement.

To strictly comply with procurement laws, regulations, and tender evaluation

criteria during the committee engagement.

c) User Departments To provide a business case and justification for acquisition of goods, works and

services devoid of conflict of interest.

To sign integrity pact and non-disclosure confidentiality agreement during

procurement initiation process (appendix ii).

To disclose conflict of interests if any during preparation of procurement plan and

budget.

To report any procurement unethical practices to Ethics and Integrity Office & MD.

To put into place procurement integrity controls in the department including

mitigating supply of inferior goods and services, inflated prices of goods and

services, monitoring performance of contracts and ensuring specifications are

standard and fair to bidders.

Identify possible procurement ethics and integrity risks that may occur in their

respective departments and institute mitigations plans.

To ensure department adheres to Public finance management Act 2012 and

Procurement regulations during procurement and asset disposal process.


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d) Contract and Conveyance DepartmentTo ensure that there is a clause in all contracts binding the parties to comply with

this policy and committing contractors to sign integrity pact (appendix iii).

To safeguard the interest of the Authority during the tender document preparation

stage and to witness the signing of the final contract.

To advise generally regarding contract preparation and signing.

To report procurement irregularities noticed during drafting of contract to Ethics

and Integrity Office.

To ensure that there is a clause in all contracts binding the parties to comply with

this policy and committing contractors to sign integrity pact (appendix iii).

To safeguard the interest of the Authority during the tender document preparation

stage and to witness the signing of the final contract.

To advise generally regarding contract preparation and signing.

To report procurement irregularities noticed during drafting of contract to Ethics

and Integrity Office.

e) Finance Department Implement financial controls as per the relevant financial policies.

Mitigating suppliers’ risks by ensuring supplier compliance with regulation,

legislation and contract obligation before payment is done.

To report red flags or suspected procurement fraud to Ethics and Integrity Office

and MD.

To monitor compliance with departmental procurement budget and flag

misposting.

To verify and validate any changes to vendor master data.

Comply with written instruction to stop payment when notified the existence of

suspected fraud.


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10.0 PROCUREMENT AND ASSET DISPOSAL FRAUD RESPONSE PLAN

10.1 REPORTING PROCUREMENT AND ASSET DISPOSAL IRREGULARITIES

Any irregularity that is detected or suspected must be reported immediately to the

Ethics and Integrity Office, that will coordinate all investigations with other

affected areas, both internal and external.

Great care should be taken during the investigation of suspected procurement

and asset disposal irregularities in order to mitigate mistaken accusations or

alerting suspected individuals that an investigation is under way.

An employee or vendors who discovers or suspects procurement and asset

disposal fraudulent activity will contact the Ethics and Integrity Office immediately

through the following means

Visit us to our Office, Ethics and Integrity department at Security Block, 2nd

Floor.

Through telephone Numbers: 0794272376 and 0412113646 operating

from 8 a.m. - 5p.m. Working Days.

All inquiries concerning the activity under investigation from the suspected

individual should be directed to the Ethics and Integrity Office.

No information concerning the status of an investigation will be given out.

The employee or complainants may wish to remain anonymous.

The reporting individual should be instructed to do the following:

Do not contact the suspected individual to determine facts or demand

restitution.

Do not discuss the case, facts, suspicions, or allegations with anyone unless

specifically asked to do so by the Ethics and Integrity Office.


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10.2 OBLIGATIONS TO REPORT PROCUREMENT AND ASSET DISPOSAL FRAUDS:

Under KPA Whistleblowing Policy, Code of Ethics & Conduct and Human

Resource Manual, employees are required to report unethical practices including

any suspected incidents of violation of procurement and asset disposal

regulations, KPA Procurement rules, policies or guidelines to Ethics and Integrity

and MD Office.

Suppliers who suspect procurement and asset disposal fraudulent activities

should notify the Ethics and Integrity Office as soon as possible.


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11.0 INVESTIGATION RESPONSIBILITIES 11.1 AUTHORITY TO INVESTIGATE PROCUREMENT IRREGULARITIES

Responsibility for the investigation of the suspected fraudulent procurement and

asset disposal unethical activities is placed on relevant departments tasked with

investigatory and assurance within Authority.

Where the investigation establishes that fraudulent activities have occurred, the

reports is communicated to the Managing Director and if appropriate, to the Board

of Directors through the Audit Committee.

11.2 INVESTIGATION STANDARDSAll investigations conducted by the Investigatory and assurance Offices shall be

fair and impartial, with due regard to the rights of all persons or entities involved.

The presumption of innocence applies to those alleged to have engaged in

misconduct.

The investigatory and assurance offices are required to treat all information

received confidentially.

Investigation results will not be disclosed or discussed with anyone other than

those who have a legitimate need to know.

11.3 REFERRALS TO AND ASSISTANCE FROM OTHER AGENCIES

The Ethics and Integrity Office may refer the procurement and asset disposal fraud

cases to Law Enforcement Agencies during investigation for further assistance.

However, such request will be made in conjunction with senior management and the

Board.


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36 | Kenya Ports Authority, Code of Ethics and Conduct 2018

11.4 AUTHORITY TO ACCESS AND USE INFORMATION Officers of the Ethics and Integrity Office on assignment have:

Free and unrestricted access to all Procurement and asset disposal records

during investigation.

A duty to invite any persons of interest for fact finding, interview and interrogations.

An option to verify the services rendered by contractors or goods supplied during

investigation.

An option to seek expert advice during investigation.

A leeway to adopt any verification procedures as deemed appropriate.

11.5 WHISTLEBLOWER PROTECTION Authority should not retaliate against a whistleblower for reporting procurement

and asset disposal fraudulent activity including but not limited to threats of

physical harm, dismissal, transfer to an undesirable job assignment, demotion,

suspension, or impact on salary or wages.

Whistleblowers who believe that they have been retaliated against, may file a

written complaint to Ethics and Integrity Office. Any complaint of retaliation will be

promptly investigated by the Ethics and Integrity Office and appropriate remedial

measures will be recommended as per KPA Human Resource Manual and Whistle

blowing policy if allegations of retaliation are pro.

Procurement & Disposal Of Assets Anti-fraud Policy 2021 | 24

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12.0 BREACH OF THE POLICY PROVISIONS All the offences relating to the procurement and asset disposal fraud will constitute Gross

Misconduct and should be punishable as per KPA Human Resource Manual and relevant

regulations.

13.0 SYSTEM EXAMINATION REVIEW

13.1 SPECIFIC OBJECTIVESTo examine procurement and asset disposal systems, policies, procedures, and

practices that exposes Authority to corruption and unethical practices.

To make recommendations based on findings.

13.2 RATIONALESystem examination review should be informed by:

Complaints from the vendors, user departments and procurement employees

about procurement and asset disposal irregularities.

Frequency of occurrence of violation of Procurement and asset disposal

regulations.

Corruption perception surveys on Procurement Department.

Investigation reports findings on Procurement and asset disposal Irregularities.

Disciplinary cases on violation of procurement and asset disposal regulations.

Adverse reports in the media on Procurement and asset disposal issues.

Department Ethics and Integrity Risk assessment findings.

Adverse internal/external audit reports on Procurement practices.

Request from the Procurement & Suppliers Department upon detection of

procurement and asset disposal process weaknesses or occurrence of fraud

event.


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14.0 REVIEW OF POLICYThe policy will be reviewed after every 3 years and when need arises.

15.0 EFFECTIVE DATEThis policy has been approved by the Board of Directors for operationalization with effect

from 12th February 2021.


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APPENDIX I

Integrity Pact Form 2 IPF2(C)

(Committees)

KENYA PORTS AUTHORITY

Name of the committee ______________________________________________________

Subject of the committee_____________________________________________________

I___________________________________ Check No_____________________________

Undertake to abide by the relevant Laws, regulations, guidelines to this committee

together with KPA integrity and administrative policies.

I declare that I have no conflict of interest to the extent of the defined mandate and terms

of reference of the committee and that I shall not disclose any confidential information that

comes into my knowledge ,possession and that is deliberated upon during the committee

proceedings. I understand that disclosure of such information to unauthorized parties may

prejudice the output of the committee.

I confirm that the declaration I have made above is, to the best of my knowledge, correct.

I fully understand that, if it is concluded that the declarations, I have made are false or

materially misleading, The Authority may institute disciplinary measures against me as

stipulated in the HR Manual.

Designation_______________________________________

Committee Membership_______________________________________

Signature _____________________________________

Date_______________________________________

Turn overleave for notes


APPENDIX I

Integrity Pact Form 2 IPF2(C)

(Committees)


Name of the committee ______________________________________________________

Subject of the committee_____________________________________________________

I___________________________________ Check No_____________________________

Undertake to abide by the relevant Laws, regulations, guidelines to this committee

together with KPA integrity and administrative policies.

I declare that I have no conflict of interest to the extent of the defined mandate and terms

of reference of the committee and that I shall not disclose any confidential information that

comes into my knowledge ,possession and that is deliberated upon during the committee

proceedings. I understand that disclosure of such information to unauthorized parties may

prejudice the output of the committee.

I confirm that the declaration I have made above is, to the best of my knowledge, correct.

I fully understand that, if it is concluded that the declarations, I have made are false or

materially misleading, The Authority may institute disciplinary measures against me as

stipulated in the HR Manual.

Designation_______________________________________

Committee Membership_______________________________________

Signature _____________________________________

Date_______________________________________


NOTESThis integrity pact is prescribed by Ethics and Integrity department as part of

measures aimed at improving integrity of Authority’s processes.

The document is required to accompany all committee reports.

The form must be filled detailing full description of the name, subject matter of the

committee and members details as provided.

Procurement & Disposal Of Assets Anti-fraud Policy 2021 | 28

i.

ii.

iii.

29 |

APPENDIX ii

INTEGRITY PACT FORM 3 IPF3(D)


(Head of Department)Name of the Department _____________________________________________________

Description of Purchase Requisition ____________________________________________

I____________________________________ Check No_____________________________

Undertake to abide by the relevant Laws, regulations, guidelines underpinning Public

procurement process in the Department.

I declare that I have no conflict of interest to the extent of the preparation of departmental

procurement budget & plan, developing specifications/TOR and purchase requisition.

Additionally, I shall not disclose any confidential information that comes into my

knowledge, possession and that is deliberated upon during departmental procurement

budget & plan, developing the specifications/TOR and purchase requisition to

unauthorised person.

I understand that failure to abide by the above provisions during procurement process is

in contravention to Public procurement and Asset disposal Act, 2015, Public Officer

Ethics Act, 2003, Anticorruption and Economic Crimes Act 2003, Leadership and

Integrity Act, 2012, & Leadership and Integrity Regulations, 2015

I confirm that I am aware of the provisions of 46(1)(d) and 46(2) of Leadership and

Integrity Act, 2012, hence, declare the above information to be true to the best of my

knowledge.

Designation_____________________________________

Signature_____________________________________

Date________________________________________



30

APPENDIX ii

INTEGRITY PACT FORM 3 IPF3(D)


(Head of Department)Name of the Department _____________________________________________________

Description of Purchase Requisition ____________________________________________

I____________________________________ Check No_____________________________

Undertake to abide by the relevant Laws, regulations, guidelines underpinning Public

procurement process in the Department.

I declare that I have no conflict of interest to the extent of the preparation of departmental

procurement budget & plan, developing specifications/TOR and purchase requisition.

Additionally, I shall not disclose any confidential information that comes into my

knowledge, possession and that is deliberated upon during departmental procurement

budget & plan, developing the specifications/TOR and purchase requisition to

unauthorised person.

I understand that failure to abide by the above provisions during procurement process is

in contravention to Public procurement and Asset disposal Act, 2015, Public Officer

Ethics Act, 2003, Anticorruption and Economic Crimes Act 2003, Leadership and

Integrity Act, 2012, & Leadership and Integrity Regulations, 2015

I confirm that I am aware of the provisions of 46(1)(d) and 46(2) of Leadership and

Integrity Act, 2012, hence, declare the above information to be true to the best of my

knowledge.

Designation_____________________________________

Signature_____________________________________

Date________________________________________


NOTESThis integrity pact is prescribed by Ethics and Integrity department as part of

measures aimed at improving integrity of Authority’s procurement processes.

The document is required to accompany all purchase requisition to the Head of

Procurement and Supplies.

The form must be filled detailing the department, Number, and full description of

purchase requisition.

The Head of department or authorised person to fill personal details as provided,

sign and stamp.

No purchase requisition will be processed without this integrity pact.


i.

ii.

iii.

iv.

v.


APPENDIX III

INTEGRITY PACT FORM 4 (IPF4 S)

(Contractors)

KENYA PORTS AUTHORITYI______________________________________ Of Post Office Box __________________

Undertake to abide by the Authority’s code of conduct and ethics to ensure the integrity

of my person and the services I provide to the Authority. I shall not be involved in any

corrupt or fraudulent practice in contravention of my contract with the Authority. I will

observe the terms of the code of ethics by disclosing any unethical malpractices that I

encounter when in contact with the Authority’s employees.

Contravention of this pact will render my contract or services terminated.

Name of the Authorized Officer/Agent of Tenderer/ Contractor/ Supplier.

__________________________________________________________________________

Designation of the Authorized Officer __________________________________________

Signed by the Authorized Officer _____________________________________________

Date: ____________________________

36 | Kenya Ports Authority, Code of Ethics and Conduct 2018

APPENDIX III

INTEGRITY PACT FORM 4 (IPF4 S)

(Contractors)

KENYA PORTS AUTHORITYI______________________________________ Of Post Office Box __________________

Undertake to abide by the Authority’s code of conduct and ethics to ensure the integrity

of my person and the services I provide to the Authority. I shall not be involved in any

corrupt or fraudulent practice in contravention of my contract with the Authority. I will

observe the terms of the code of ethics by disclosing any unethical malpractices that I

encounter when in contact with the Authority’s employees.

Contravention of this pact will render my contract or services terminated.

Name of the Authorized Officer/Agent of Tenderer/ Contractor/ Supplier.

__________________________________________________________________________

Designation of the Authorized Officer __________________________________________

Signed by the Authorized Officer _____________________________________________

Date: ____________________________

procurement & disposal of assets anti-fraud policy

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