The Central Bank of Kenya and British firm De La Rue got a reprieve Tuesday after the High court suspended a decision terminating the multi-billion shilling contract for the printing of new currency notes.
Justice George Odunga said the decision by the Public Procurement Administrative Review Board will remain suspended pending hearing and determination of the two cases pending in court.
"Leave is hereby granted to both applicants to file substantive applications within five days," the judge ruled.
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He issued the orders after parties told him they wanted the matter expedited since it's in the interest of justice.
"What is at stake here is the printing of new currency pursuant to the constitution" lawyer Fred Ngatia appearing for De La Rue said.
The judge directed parties to go back to court on Friday, January 19 for further directions.
CBK and the printing firm had filed separate cases, but the judge said the two matters will be heard together as they seek similar orders.
CBK is accusing PPARB of acting illegally and irrationally.
This is after the procurement watchdog nullified the Sh10 billion-a-year tender award to De La Rue International last Monday, on grounds that the tendering rules were flouted.
Background
Both CBK and De La Rue will be asking the court to suspend the board’s decision pending determination of the case.
CBK is expected to issue a new currency in line with the 2010 Constitution that outlaws the use of images of individuals.
Other firms including Giesecke & Devrient, Crane Currency and Oberthur Fiduciaire of France were interested in the lucrative contract for printing new notes, but De La Rue won the award.
Crane appealed the decision to award to De La Rue and on January 8, the PPARB directed CBK to undertake within 14 days a fresh evaluation of all tenders submitted by the four bidders. The board was of the view that the award to De La Rue was unlawful and so was a 15 per cent preference margin given give to it.
According to the review board, the bank’s regulator flouted the public tendering procedures.
CBK, through lawyer Ochieng’ Oduol, however, says the tender was accurately and lawfully reflective of the capacity demonstrated in its bid and accompanying material.
The lawyer said in rendering the judgement, the review board acted irrationally by failing to consider the mandatory terms of the Public Pand Asset Disposal Act as well as tender documents.
“It acted illegally by allowing a request for review that was filed out of the statutory period of 14 days,” CBK says.
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