Court offers reprieve to CBK boss in Sh1.2bn tender case
Njuguna Ndung’u, Central Bank of Kenya governor. He is seeking to quash a case accusing him of office abuse through his involvement in issuing a tender at CBK. PHOTO | FILE
What you need to know:
The CBK chief is seeking to quash a case accusing him of office abuse through his involvement in issuing a tender to install security software at the bank to UK firm Horsebridge.
The High Court on November 16 threw out a petition by Prof Ndung’u seeking to block his arrest over alleged irregularities in the security software tender, prompting him to move to the Court of Appeal.
Central Bank of Kenya governor Njuguna Ndung’u cannot be arrested or prosecuted over alleged irregularities in the award of a Sh1.2 billion security tender to a UK-owned firm, the Court of Appeal has ruled.
This follows the decision by a three-judge Bench to extend an order barring his prosecution to March 6.
Justices Patrick Kiage and Steven Gatembu led by presiding judge John Mwera uniformly agreed that the CBK boss has a right to be heard at the higher court.
“We hereby allow the appeal to proceed; the order issued at the High Court is extended to March 6, 2015,” ruled the Bench.
The governor’s lawyer Donald Kipkorir had told the judges that the High Court erred in allowing his prosecution over non-existent crimes.
The CBK chief is seeking to quash a case accusing him of office abuse through his involvement in issuing a tender to install security software at the bank to UK firm Horsebridge.
Prof Ndung’u 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 governor has denied involvement in the tender process saying the deal was awarded by an authorised body.
The High Court on November 16 threw out a petition by Prof Ndung’u seeking to block his arrest over alleged irregularities in the security software tender, prompting him to move to the Court of Appeal.
If charged, Prof Ndung’u would be suspended from office and the deputy governor will take charge at 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 Justice Korir’s decision, and the case is still ongoing. Mr Justice Odunga granted Prof Ndung’u 14 days to appeal after his lawyer Donald Kipkorir applied for stay orders.
Prof Ndung’u, who became Central Bank governor in 2007, weathered a political storm in 2012 as Parliament tried to oust him over currency turmoil in 2011, when the shilling weakened sharply and inflation soared.
His term runs until February 2015.
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