Ex-CBK governor fights charge over Sh1.2bn deal

Former Central Bank of Kenya governor Prof Njuguna Ndung’u. PHOTO | SALATON NJAU | NMG

What you need to know:

  • Prof Ndung’u troubles are linked to the award of a tender for installation of an integrated security management system at the CBK.
  • EACC says Prof Ndung’u authorised the award of the tender contrary to the law.
  • The former central bank chief in his appeal says he was not a member of the tender committee which recommended the award.

Former Governor of Central Bank of Kenya (CBK) Prof Njuguna Ndung’u has urged the Court of Appeal to bar his prosecution over the Sh1.2 billion tender to install a modern security system at the regulator.

Prof Ndung’u, who retired in February 2015, is appealing against a High Court order by Justice George Odunga in November 2014 for his prosecution on abuse of office.

Lawyers Cecil Miller and Peter Wena for the former governor says the judge erred in law and fact by allowing the director of public prosecutions (DPP) Keriako Tobiko and the Ethics and Anti-Corruption Commission (EACC) to commence the trial against their client.

Troubles

Mr Miller is asking the court to issue an order declaring that there is no sufficient evidence gathered by EACC to press criminal charges against the former governor.

Prof Ndung’u troubles are linked to the award of the Sh1.2 billion tender Horsebridge Networks Systems EA Limited for the installation of an integrated security management system at CBK headquarters and its branches.

The anti-graft agency says Prof Ndung’u authorised the award of the tender contrary to the law.

It also holds the contract was Sh400 million above budget.

Mr Mille says recommendation by the EACC that Prof Ndung’u be prosecuted for allegedly escalating the tender from the initial budget of Sh800 million does not hold water since installation costs have increased since 2006 to 2014.

Evaluation process

The former central bank chief in his appeal says he was not a member of the tender committee which recommended Horsebridge be awarded the tender on May 14 2012.

Mr Miller says that 58 bidders purchased the tender documents, but only six of them responded or submitted their bids.

“ During the tender evaluation process by the CBK tender commitee, which Prof Ndung’u was not a member picked Horsebridge Networks Systems (EA) as the lowest bidder having quoted the sum of Sh1,219,003,971.42,” Mr Miller says in the evidence he has filed at the Court of Appeal.

Another suit

The court has been told that before the execution of the recommendation of the tender committee the EACC begun to investigate Prof Ndung’u.

This came as Horsebridge also filed a petition at the procurement court pushing for award of the tender.

Another suit was filed at the High Court where Justice Weldon Korir ordered Prof Ndung’u to implement the decision of the committee.

Prof Ndung’u states that he should not prosecuted for implementing orders of both the High Court and Public Procurement Review Board.

“It is important to always bear in mind that the Public Procurement and Administrative Review Board awarded the contract to Horsebridge, the appellant (Prof Ndung’u) is not a member of tender committee and did not participate in the tender process,” Miller states.

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