Storm at City Hall over Jambopay system

Storm at City Hall over Jambopay system

- in Investigations, News
JamboPay Chief Executive Danson Muchemi.

A storm is brewing at City Hall over recommendations by the Nairobi County Assembly Select Committee on Public Accounts not to renew Jambopay electronic cash collection system as the contract lapses this year.

Instead, the committee resolved the county government should develop internal foolproof automated revenue collection system by capacity building the ICT department. “The county government should not renew its contract with the provider of Jambopay payment system at the end of the contract term and instead develop its own internal foolproof automated revenue collection system.” The report says.

The executive plans to procure an Integrated City Revenue Management System to replace the laifoms system, a legacy system inheriyted from the defunct ministry of local government. Further, the committee observed that Jambopay has flouted the agreement by delaying to remit money collected up to 30 days collected instead within the mandatory timeframe of 72 hours.

“The contract provides that funds collected should be remitted to the County Government within seventy two hours upon receipt. However, review of records reveals that it takes up to a month to remit the funds which is contrary to the agreement between the County Government and the contracted firm.” The report says in part.

In February this year, WebTribe Limited threatened to end the deal with City Hall citing frustrations and political intimidation. JamboPay Chief Executive Officer Danson Muchemi wrote the protest letter to Nairobi governor Mike Sonko through letter reference number Ref:WTL/2018/NCC/02/12-HQ dated February 26, 2018.

Webtribe Limited and Nairobi County Government Jambopay deal has been clouded by mystery since its inception and has been marred by court cases and petitions to the Ethics and Anti-Corruption Commission over the procedure the lucrative contract was awarded.

“JamboPay is committed to supporting your agenda to transform Nairobi County through the provision of an efficient electronic payment service e-jijiPAY. We are, however, facing serious challenges that the letter serves to bring to your attention,” the letter reads in part. However, the matter was gradually downplayed but was preceded by massive e-jijiPAY system breakdown.

The tender has been challenged before Eacc over secrete clauses in the contract agreement which provides that information and data exchanged between Nairobi County and Webtribe, a privately owned firm, will be kept a secret despite the county being a public institution.

“The parties undertake to keep strictly confidential all information and data exchanged between the (including those in the per-contractual stage) as well as the terms of this contract for the contracting period.” Part of the contract agreement reads. Section 2.1.5 of the agreement highlights appointment and/or recruitment of NCC revenue collection agents as one of rights and obligations extended to Webtribe.

Webtribe was awarded the contract through No. NCC/ICT/RFP/114/2013-2014 at a contested bid of Sh23, 200, 000 and a recurrent operational cost of 4.5 per cent of total actual revenue collected through Jambopay.

“The transaction fee payable to Webtribe by NCC shall be an equivalent of four point five per cent (4.5%) of all the funds collected through Jambopay.” The agreement provides. Provision 2.1.19 of the contract agreement provides that Webtribe will take liabilities for any fraudulent transaction carried out by its users, customers through Jambopay services offered by NCC.

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