Swiss firm responds in battle with Pattni for duty free shops
Kamlesh Pattni’s firm claims that there is an existing court order issued in 2008 stopping KAA from awarding any other party a contract to run the duty-free shops. PHOTO | FILE
What you need to know:
Dufry International defends the tender award from claims by Mr Pattni’s World Duty Free Company which asserts that a previous contract it was awarded to exclusively operate the shops in Nairobi and Mombasa airports is active, making the KAA-Dufry one illegal.
The Swiss firm also says it was not granted an exclusive concession agreement by KAA to run the lucrative business.
KAA however maintains that the contract expired in July last year, allowing them to sign the new agreement.
A Swiss company has filed its response to a case challenging its win of a tender for construction and running of duty free shops at Kenyan airports, setting the stage for a court battle with controversial businessman Kamlesh Pattni and the Kenya Airports Authority (KAA).
The controversial duty-free shops tender is believed to be among reasons that have led to the suspension of KAA managing director Lucy Mbugua and three other senior managers of the regulatory agency.
Ms Mbugua is said to have inserted a clause which gave the Swiss firm, Dufry International, a permanent lease to build and operate duty free shops at Kenyan airports before amending the contract on orders of the parent Ministry of Transport and Infrastructure.
Dufry International, in its filings, defends the tender award from claims by Mr Pattni’s World Duty Free Company which asserts that a previous contract it was awarded to exclusively operate the shops in Nairobi and Mombasa airports is active, making the KAA-Dufry one illegal.
The Swiss firm also says it was not granted an exclusive concession agreement by KAA to run the lucrative business.
Pattni’s firm claims that there is an existing court order issued in 2008 stopping KAA from awarding any other party a contract to run the duty-free shops. KAA however maintains that the contract expired in July last year, allowing them to sign the new agreement.
Dufry was in October last year awarded the 10-year contract to build and maintain duty-free shops at Jomo Kenyatta International Airport (JKIA).
Nuance Group initially won the tender but the award was successfully challenged at the Public Procurement Administrative Review Board and KAA was ordered to tender afresh.
The Swiss firm says that claims made by Pattni’s firm did not have any legal basis as due process was followed in the tendering process.
“Contrary to the allegations made… the concession agreement was a culmination of due process and in compatibility with KAA’s duty to ensure that no particular person is given undue preference or subjected to undue disadvantage,” said Ashraf Fathi, the managing director of Dufry’s Kenya operations in court filings.
The Swiss firm claims that the World Duty Free Company Ltd, which trades as Kenya Duty Free Complex, failed to follow the law in challenging the legal process.
Mr Fathi said that all opportunities to challenge the process had already been exhausted as the award had been challenged twice at the review board by Flemingo International Limited and Atu Turizim Isletmeciligi.
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