The Central Bank of Kenya got a reprieve yesterday after the High Court rejected a bid that had sought to bar it from opening tenders for printing the new design Kenyan currency.
Justice Chacha Mwita declined to issue the orders after De La Rue moved to court last week seeking to stop the tender process.
However, CBK opposed their move, and asked the court to dismiss the petition. The bank argues that De La Rue has not disclosed all material facts before the court.
Through lawyer Ochieng Oduol, CBK told the court that the procurement process of currency banknotes commenced in 2014 following an advertisement for prequalification of suppliers for production of Banknote Origination Material and Currency printing services.
Odoul further dismissed the allegations by De La Rue that the tender began this year.
In his submissions, he argued that the printing firm did not participate in the prequalification process nor were they invited to submit tenders or participate in the issued tenders.
Oduol further said that the tender document is a confidential document that is protected by section 67 of the public Procurement and Asset Disposal Act and therefore it cannot be disclosed except by an order of the court.
He claimed that the petitioners illegally obtained the tender document in breach of the CBK right to privacy and the privacy of its communication with the pre-qualified tenders under Article 31 of the Constitution.
“The production of the Tender Document is in violation of sections 35 and 80 of the Evidence Act and is inadmissible as evidence in the present proceedings, “Oduol argued.
The bank further said that De La Rue did not apply for pre-qualifications despite their knowledge of the same and therefore have no locus to challenge the procurement process.
They asked the court to strike out the petition adding that the procurement process was fair, transparent, competitive and legal in accordance with the law.
“CBK stands to fail to deliver on its constitutional mandate to the Kenyan public, suffer losses, massive irreparable damage to the economy that cannot be atoned in monetary terms,” reads court documents.
CBK says that the application filed before the court had been filed in gross abuse and that the currency printing tender process is security sensitive and strictly bound.
In the petition, De La Rue wanted the court to stop the tendering process pending determination of the case on grounds that the move will lead to irreparable harm to the local industry
They have accused the CBK of unlawfully restricting the tender process to foreign entities in violation of mandatory requirements guiding the procurement process.
They further argued that there is an increased national security risk in allowing the tender to proceed in its current form without due consideration given to the benefit of local production as well as destruction of old notes.
De La Rue Kenya CEO, Ian Davies, argued that the law requires all public bodies including CBK to conduct a procurement process that is fair, equitable, transparent, and competitive and cost-effective.
The case will be mentioned on November 30.
Meanwhile CBK has invited various foreign entities to submit their bids by today morning, precisely 10.30am.