20 February 2010
Nairobi — The National Cereals and Produce Board (NCPB) awarded a Sh6 million contract to a company associated with the chairman of the Cereal Millers Association (CMA) to supply bags for the subsidised maize flour through single sourcing.
The firm, Polysack Limited, was given a contract to supply 485,000 bags in which to pack the flour that was milled by six of the big millers in the country.
Diamond Hasham Lalji, who chairs CMA, is a director of the Thika-based Polysack Limited. Sources said he was awarded the contract after lobbying NCPB officials following a meeting held at Treasury in December 2008.
The meeting, which was attended by Prime Minister Raila Odinga, Agriculture minister William Ruto, permanent secretaries Joseph Kinyua (Finance), Dr Romano Kiome (Agriculture), Ali Mahmoud (Special Programmes) and leading millers, also authorised the release of 400,000 bags of maize from the SGR to six local millers.
Mr Lalji chairs CMA by virtue of being one of the two principal directors in two large milling companies, Premier Flour Mills and Atta (K) Ltd.
Diamond Lalji is reported to have landed the deal for the 410,000 (5kg) and 75,000 (10kg) bags using CMA.