Judge stops Posta from selling land in Bharti dispute
A judge has issued an injunction restraining the Postal Corporation of Kenya (PCK) from selling a prime piece of land, which had earlier been offered to Bharti Airtel International.
Mr Justice George Odunga ruled that Posta should not open tenders or advertise the land for sale until a suit filed by directors of a private company is heard and determined.
Nahashon Macharia and Charles Kabiru, directors of Wagon Park Limited, moved to court under certificate of urgency claiming that the corporation had advertised the sale of the plot without following proper procedures.
They argued that PCK leased the land to them for five years between 2004 and 2009, and that during the term of the lease they had carried out major developments on the property.
“Having established goodwill with our customers, we had the desire to have the lease extended, but PCK refused and instead gave it out to our neighbours and competitors in disregard of Restrictive Trade Practices, Monopolies and Price Control Act,” said the petitioners.
Being a public entity, the petitioners claim PCK’s decision to deny them a new lease and give it out to Yaya Car Sales and Sakai Trading Limited in 2010 was unprocedural and illegal since it was not subjected to public tendering as prescribed in the Public Procurement and Disposal Act.
They are seeking Sh5.5 million compensation and general damages for loss of business before the corporation is allowed to sell the land.
They claim that after being affected by the decision to deny them extension of their lease, they complained to the Anti-Corruption Commission but nothing was done until they heard that the land was being sold to Bharti.
They claim that when they were leased the property, it only had single dwelling residential houses but they transformed it into a commercial premise with steel posts and electric fencing, and that PCK will benefit from the investment without compensating them.
Mr Justice Odunga directed PCK to file its response to claims made by the petitioners within three days and set February 13 to hear the matter. The 5.03 acre land situated off Argwings Kodhek Road in Kilimani, Nairobi has been shrouded in controversy after the state corporation’s board withdrew an offer to sell the land to Bharti early this month.
PCK decided to advertise tenders for the property following recommendations by Attorney -General Githu Muigai that it rescinds the contract with Bharti because it had deviated from the Public Procurement and Disposal Act, 2005.
Bharti had intended to set up its African headquarters and business process outsourcing centre.
