Capital FM (Nairobi)

23 July 2014

Kenya: Fee Sought By Firm in CBK Contract Opposed

Nairobi — The Ethics and Anti-Corruption Commission has asked the High Court not to grant orders compelling the Central Bank of Kenya to pay a security installation firm Sh121 million as performance bond.

The commission asked Judge Weldon Korir not to issue the orders sought by Horsebridge Network Systems EA Limited since the award of the tender to install a modern security system at the CBK is still under investigation.

Through its advocate David Ruto, the EACC argued that such an order should not be granted since the Director of Public Prosecutions has already recommended the prosecution of the CBK Governor for alleged economic crimes.

"There is danger in granting order of mandamus because we are saying in the event the investigations were to unravel that the firm was in breach they would have already benefited," he stated.

"It is not in the public interest to grant orders because CBK had budgeted for Sh800 million. Yet the applicant is asking for a contract of Sh1.27 billion.'"

He said EACC should be allowed to finalize its investigations in order to be sure that no act of corruption or economic crimes was committed.

On its part, CBK has asked the court for permission to go ahead with its plans to revamp its surveillance system.

"CBK requires to revamp its surveillance system and the process should not be delayed any more so because there is no clarity from the applicants," lawyer Waweru Gatonye representing the CBK submitted.

CBK argues that Horsebridge should not be allowed to derail the procurement process any further.

Horsebridge on the other hand opposed EACC's submissions, arguing that there is nothing to impede the contract as there is, "nothing in court to show investigations are still ongoing."

Through lawyer Anthony Wandabwa, the firm said "there is nothing to impede the contract because of impeding investigations that were carried out over a year ago."

Horsebridge has sued the CBK for refusing to execute the formal contract notwithstanding the fact that the Public Procurement Appeals and Review Board (PARB) had on January 4 directed it to finalise contract agreements and pay a performance bond of the amount it is demanding.

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