Court allows firm to sue CBK for pay over tender award

A High Court judge has granted Horsebridge Network Systems orders to compel the Central Bank of Kenya to pay them Sh121m for the security tender award which EACC is investigating.

Justice Weldon Korir directed Horsebridge Network Systems East Africa Limited to sue CBK for the payment failure in a bid conclude negotiations agreement regarding the tender award.

Horsebridge, the company which allegedly CBK governor Njuguna Ndung’u was accused of holding discussions and giving directions that it gets the tender award, alleges that CBK has declined to pay them Sh 121,900,398.

According to Horsebridge, CBK is withholding the payment since the Ethics and Anti-Corruption Commission is still investigating the tender award.

“Leave granted for Horsebridge to seek orders compelling CBK to conclude and execute the agreement in respect to the tender for the supply, installation and Commissioning of an Intergrated Security Management System for CBK,” said judge Korir.

Horsebridge, through lawyer Andrew Wandabwa alleges that the public Procurement Appeals and Review Board on January 4 directed CBK to finalize contract agreements and pay a performance bond of the said amount to them but have declined to do so.

“CBK has refused to enter into contract with the Horsebridge in respect to the cited tender notwithstanding the fact that PPARB had directed them to do so after successful negotiations and have continued to hold these money,” said Mr Wandabwa.

Horsebridge claims that it has not been charged of flouting any procurement rules or any commercial consideration and law to the signing of the contract to necessitate CBK’s refusal to execute the formal contract.

The firm further claims that neither the Director of Public Prosecution nor the anti-grafts body has written to CBK to stop the process.

Horsebridge terms the refusal as unreasonable and unfair.

Its business development director Philip Kago says the tender was advertised in May 14, 2012 and six entities had bid on July 3, 2012.

During the evaluation, three bidders had met the requirements while Horsebridge turned out to be the lowest at Sh 1,219,003,971.42 however the tender declined to award the tender and directed that re-evaluation of Horsebridge and another firm, Orad Ltd.

It is then that the review board ruled that the award be given to Horsebridge and CBK has not made any efforts to comply with finalizing the tender contract.

Horsebridge wrote to EACC to investigate but they have never responded and thereafter allegations surrounding flouting of procurement rules by the CBK governor in the said tender followed.

Justice David Majanja recently granted orders stopping Njuguna’s arrest over any alleged corruption offences following a directive from the Director of Public Prosecution Keriako Tobiko that he be prosecuted for irregularly awarding a Sh1.2 billion tender to install a modern security system at CBK.

The hearing will be on March 28.