CBK boss appeals arrest bid

The Central Bank Governor Njuguna Ndung'u. Photo | FILE

What you need to know:

  • The CBK chief is seeking to throw out a case accusing him of abuse of office in issuing a tender to install security software at the bank.
  • The High Court on November 16 threw out a petition by Prof Ndung’u seeking to block his arrest.
  • If charged, Prof Ndung’u would be suspended from office and his deputy take charge.

Central Bank of Kenya Governor Njuguna Ndung’u has moved to the Appeals Court to block his arrest over alleged irregularities in the award of a Sh1.2 billion security tender to a UK-owned firm.

The CBK chief is seeking to throw out a case accusing him of abuse of office in issuing a tender to install security software at the bank.

The High Court on November 16 threw out a petition by Prof Ndung’u seeking to block his arrest. The court ruled earlier this month that the government’s anti-graft agency and chief prosecutor could pursue the case against the CBK governor.

In the Appeal Court filing on Tuesday, Prof Ndung’u’s lawyer Donald Kipkorir said the charges lacked a legal or factual basis.

“The judgment is completely erroneous,” Dr Kipkorir told Reuters.

If charged, Prof Ndung’u would be suspended from office and his deputy take charge.

Prof Ndung’u, who became CBK governor in 2007, weathered a political storm in 2012 after Parliament tried to oust him over currency turmoil in 2011 when the shilling weakened sharply and inflation soared.

Prof Ndung’u has denied involvement in the security software case, saying he was not involved in the tender process and that it was awarded by an authorised body.

He found himself at the centre of the procurement battle following claims that he directed the CBK’s procurement board committee to ensure Horsebridge got the tender.

The governor is also under the spotlight over inflation of the tender price from Sh800 million to Sh1.2 billion.

The Sh1.2 billion deal was to see Horsebridge install and maintain a new security surveillance system for the CBK.

The November 16 ruling added a new twist to the matter, following a ruling by another High Court judge which gave a clean bill of health to Horsebridge’s tender award.

The Ethics and Anti-Corruption Commission (EACC) moved to the Court of Appeal to contest the decision, and the case is still ongoing.

Justice George Odunga granted Prof Ndung’u 14 days to appeal after his lawyer Dr Kipkorir applied for stay orders. His term runs until February 2015.

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