Local company hired for gov’t cheap gas project folds

A local firm contracted by the government in the lackluster cheap gas scheme is headed to the grave.

The administrator of of Allied East Africa Limited (under administration) has offered the assets of the company for sale.

“Interested parties may visit the premises to inspect the assets with prior appointment or seek any information by writing to the Administrator,” the company’s administrator Panangipalli Rao said in a public notice on Thursday.

Interested bidders for the company’s assets are expected to furnish the Tact Consultancy Administrator with their bids by September 15.

Allied East Africa has been in administration since November of 2018 after falling into financial turmoil.

Under the scope of the underwhelming Mwananchi Gas Project, the company had been contracted to supply over 148,000 LPG cylinder but only delivered 61,380 units with 47,534 units being rejected for faultiness.

The government would subsequently terminate the contract and ordered the company to compensate it for the contractual failure.

Three other contracted firms in the project also failed it honoring their contracts to include the supply of more faulty cylinders leading to the suspension of the project by High Court.

The Mwannachi Gas Project had been tipped to provide millions of households with subsidized cooking gas cylinders.