New-look currency dispute now in court

The Central Bank of Kenya and British firm De La Rue have taken protests over the nullification of Sh10 billion tender award for the printing of the new-look Kenyan currency to court in separate cases.

In one case filed at the High Court, CBK has sued the Public Procurement Review and Administrative Board for nullifying the tender award on January 8. De la Rue and Crane AB are listed as interested parties in the case.

While nullifying the said tender award, the board ordered CBK to undertake fresh evaluation of all the tenders submitted by all four bidders who participated in the disputed tendering process.

CBK

The board also ordered CBK to complete the process within a period of 14 days from the day the decision was issued as well as take into account the board’s observations on the issue of preference, the law on Public Procurement & Asset Disposal Act and strict compliance with the tender document clauses.

Through lawyer Ochieng’ Oduol, CBK now wants the court to quash the decision by the board.

“The grant of leave to operate as a stay of the directions or orders of the PPRB on January 8 to CBK until the hearing and determination of this matter,” said Mr Oduol.

Whilst the procurement board faulted CBK 15 per cent preference margin in favour of the successful bidder during the nullification, the latter argued that the decision in its entirety was irrational, ultra vires and illegal.

NULLIFY

According to CBK, Crane AB was not pre-qualified hence not entitled to participate in the tender in question or file a review yet the directive to conduct fresh evaluation included it.

“It is in the interest of fair administration of justice and the rule of law that this matter is urgently heard and leave granted as well as for suspending the entire procurement process including the order for re-evaluation of the tenders in 14 days,” said Mr Oduol.

In the second suit, De la Rue International limited, through lawyer Fred Ngatia is challenging the board’s decision to nullify the disputed tender award.

The firm has sued the procurement board while CBK and Crane B are listed as interested parties.

EVALUATION

The firm claimed that it qualified for the prequalification as well as the restricted tenders and sought to make a case for local preference treatment of its bids.

Other bidders included Giesecke and Devrient, Crane Currency and Oberthur Fiduciaire besides De La Rue.

After evaluation, CBK through a November 30, 2017 letter told Crane it was not successful hence the tender was won by De La Rue.

But dissatisfied, Crane acknowledged receipt of the decision and sought for reasons as to why De La Rue was awarded. CBK responded through a December 5, 2017 letter

De la Rue on its part now wants the court to suspend the board’s directive regarding the fresh tendering process.