The Nairobi City Water and Sewerage Company (NCWSC) has lost its bid to terminate a multi-million shilling revenue collection tender process in which the cashless payments company JamboPay was the front runner.
NCWSC had challenged a decision by the Public Procurement Administrative Review Board (PPARB) directing NCWSC on October 25 last year to complete the tendering process in which JamboPay had emerged a favourite within 14 days.
The utility firm had said it terminated the tender process after it realised Jambo Pay was in contravention of the law.
NCWSC had argued that the decision by the procurement watchdog was illegal and went against provisions of the public finance management regulations governing county governments.
The utility had also argued it had the right to terminate the tender process “where material governance issues are detected.”
NCSWC had consequently sought court orders quashing and setting aside the decision of the procurement agency.
But in a ruling dated August 8 this year, Justice John Mativo dismissed the application.
“In view of my analysis and determinations of the issues discussed above, the conclusion becomes irresistible that the exparte’s applicant’s application dated November 9, 2018, lacks merit,” ruled the judge.
“Consequently, I dismiss the said application with no orders as to costs.”
JamboPay had challenged the decision of the NCWSC to terminate the tender process terming it illegal.
It had sought orders compelling NCWSC to complete the process as per the procurement board’s decision.
“The applicant is seeking judicial orders…compelling the respondent to complete the procurement process in respect of tender No. NCWSC/41/2017-implementaion of agency payment integration platform and digital banking channels-mobile banking, mobile money, money wallet, internet banking, agency banking including making of an award within 14 days from the October 25, 2018,” one of the orders sought by Jambopay read.
Jambopay had been behind automation of payment for parking, rental, permit and land rates for Nairobi City County until recently when its contract with City Hall ended.
It was also awarded a deal to offer payment services to the National Hospital Insurance Fund (NHIF), but this is at the centre of an alleged payments scandal. Top officials of NHIF have been charged with irregular payment of Sh545 million to Webtribe, which had been contracted to collect payments on behalf of NHIF.
Director of Public Prosecution (DPP) Noordin Haji said the deal led to the loss of Sh1.1 billion.