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Kenya: Court Rejects Bid to Block Airport Deal


The Nation (Nairobi)
 

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The Nation (Nairobi)

13 May 2008
Posted to the web 13 May 2008

Nairobi

The Kenya Civil Aviation Authority has yet again lost its bid to block an Italian company from taking part in a Sh3.1 billion project.

Mr Justice Joseph Nyamu rejected a preliminary objection raised by the authority to a suit filed against it by Selex Sistemi Integrati.

The judge said that the objection by KCAA lacked merit and the issues it had raised could as well be canvassed properly at the substantive hearing.

Time barred

KCAA had claimed in its objection that the suit by Selex was time barred given that its tender had been cancelled and re-advertised.

The authority revoked the tender upon objection of the award by a rival company. It was claimed that the amount tendered by Selex did not include VAT.

The tender was for the installation of security communication equipment in all the airports countrywide.

Mr Justice Nyamu ordered that the case be heard inter-parte on May 20, 2008. He also extended the stay given earlier, blocking KCAA from re-advertising the project.

Meanwhile, former KWS director Evans Mukolwe has no case against the parastatal, the High Court heard on Monday.

KWS lawyer Patrick Lutta told Mr Justice John Osiemo that his client had nothing to do with the former director's dismissal since "his was a political appointment".

This was during the hearing of a Sh1.6 billion claim case that Mr Mukolwe has filed against the attorney-general and the KWS.

Mr Justice Osiemo ordered that the case be heard further on June 5, 2008.

At the same time, the hearing of a case in which the managing director of Nyaga Stock Brokers, Mr Patrick Ndwiga Gakiavih, has been cited for fraud, will be mentioned on Thursday.

The case was brought before Mr Justice Paul Kihara on Monday. The Capital Markets Authority (CMA) told the judge that Mr Gakiavih had been served with the suit papers.

The court had on April 29 issued an order to freeze Mr Gakiavih's accounts following a successful application by CMA. Other than Mr Gakiavih's accounts, the court also attached some of his assets, including land.

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Reported by Caroline Rwenji, Richard Munguti, Douglas Mutua and Sam Kiplagat



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