Court stops motor vehicle leasing tender

The government has been stopped from advertising the tender for leasing of motor vehicles from local assemblers, following a petition by CMC Motors Group Ltd.

In the application certified urgent, the company argued that Interior PS Karanja Kibicho has advertised the tender through restricted tendering, before the expiry of the 14 days required by the law.

Through lawyer Migos Ogamba, the company argued that the reasons for dismissal of their case by Public Procurement Administrative Review Board were unreasonable because the board failed to look into matters it was bound to consider.

He told Justice John Mativo that the company’s rights and legitimate expectation was breached by PS.

The court consequently, suspended the decision and orders issued by the board delivered last month, for 14 days. He said the evaluation committee should not accept, evaluate or award the said tender.

The company said that the tender was terminated on the ground that the prices quoted were higher than the market prices and that the Ministry was right in suing motor vehicle leasing Phase II precise, for purpose of comparison of prices.

CMC Motors further said the board acted unreasonably in arriving at the decision as it did not direct itself properly in law.

Mr Ogamba said that the board failed to call to its attention that LOT 7 for heavy duty, utility passenger vehicle, and 4×4s, among others was not in motor vehicle leasing program Phase II but was introduced in the new Phase and as such there was obviously going to be a difference in total leasing price.

The company said there was no proper actuarial price matrix that took into account all parameters of the lease program, which issues the board was bound by the law to consider. The parameters included motor vehicle specifications, insurance, driver training service centres, vehicle replacements and out of contract prices.

Justice Mativo directed Mr Ogamba to serve the PS and the board and come back for directions on October 8.