Nairobi-based supplier of anti-malaria drugs Equip Agencies has gone back to court seeking to penalise the Ministry of Health’s principal secretary, Julius Korir, for failing to settle a Sh43 billion compensation claim.
The claim emanates from two botched tenders for the supply of anti-malarial drugs between 1993 and 1995, with the High Court observing that the Attorney General failed to defend taxpayers against the huge claim.
The firm says it was awarded Sh2.3 billion by High Court judge Muga Apondi in 2011 as compensation for the two tenders, with interest accruing at 18 per cent from March 1999.
The firm returned to court last year seeking to enforce the decree and in a ruling on December 18, 2017, Justice Roselyn Aburili issued an order compelling the ministry of health to settle the claim.
Justice Aburili in her ruling said other than notice of appeal there were no attempts by the Office of the Attorney-General to prosecute the appeal, and dismissed an objection raised by the government.
“This court has got one great concern. That of laxity, complacence or at the very worst apparent incompetence on the part of the officers at the civil litigation department of the honourable attorney general who have all along handled this matter, a matter of such great magnitude,” said Justice Aburili.
With all windows of appeal now closed since the government has not appealed against any of the judgments, taxpayers are now facing a huge claim.
The firm now claims that the orders of the two judges have never been appealed against and yet the ministry has failed to settle the matter, arguing that this is in contempt of court.
The firm further argues that ministry officials have rejected it’s pleas to negotiate on the payment.
“That the outstanding decretal amount is well over Sh43,232,309,172 due to accruing interest; that since December 22, 2007 we have attempted to engage the respondents but our efforts have been in vain as they have been non-committal and evasive to any negotiations,” says Divyesh Patel, Equip Agencies Managing Director, in court document filed on April 5.
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