Union joins suit over De La Rue notes deal

A trade union has been allowed to join a suit challenging the exclusive award to De La Rue a tender to print banknotes for 10 years.

Kenya Union of Printing, Publishing, Paper Manufacturers and Allied Workers will now be party to the case filed by a lawyer last week.

The lawyer, Mr Charles Muthusi, will amend the initial petition to include the union. Mr Muthusi claims in the petition that the tendering process was not done in a transparent manner.

Also being faulted is a decision by the Treasury to enter into a contract that granted De La Rue Kenya an export processing zone licence that exempts it from paying tax .

The lawyer argues that the decision by the Treasury and the Central Bank of Kenya (CBK) to side step the competitive tendering process for printing currency and awarding De La Rue Kenya Ltd the contract exclusively is in breach of the Procurement and Disposal Act.

In a suit filed at the High Court in Nairobi, he claims that the sale by De La Rue Kenya Ltd to the Kenya Government of 40 per cent ownership of the company is fraudulent.

The Cabinet approved the transaction on September 15. Through lawyer Kenneth Akide, Mr Muthusi says the transaction between the government and De La Rue was done in secrecy and is fraudulent and non-prudent. (READ: How Kenya fell for flawed bank notes deal)

The move, he adds, eliminates competition in the currency printing business, potentially causing unquantifiable monumental losses to the Exchequer and Kenya.

The lawyer is asking the court to issue an injunction directing the Treasury permanent secretary and CBK to produce in court and provide him with copies of all the contracts entered into between the government and De La Rue.

Also being sought by Mr Muthusi is an interim order to restrain the Treasury and CBK from executing any contract in which they are to purchase shares from De La Rue.

The case will be mentioned on December 12 for further directions. At the same time, the government’s plans to have a stake in De La Rue came up on the floor of the House last week where Finance Minister Uhuru Kenyatta confirmed that negotiations were going on with the British company over the matter.

However, on Thursday, a fresh statement was demanded by Ikolomani MP Boni Khalwale, who said the Finance minister failed to satisfy the House with his responses to questions posed to him last week.

The joint venture would see the government acquiring 40 per cent shareholding.