Currencies

CBK, De La Rue appeal against cancellation of currency tender

Central Bank of Kenya. FILE PHOTO | NMG
Central Bank of Kenya. FILE PHOTO | NMG 

The Central Bank of Kenya (CBK) and De La Rue International have appealed against the decision by the Public Procurement Administrative Review Board (PPARB) to terminate the award of a currency contract.

The contract was terminated last week after Swedish firm Crane AB accused the CBK of breaching the law in awarding the deal to De La Rue by giving it a 15 per cent margin preference for having local shareholding.

The CBK and De La Rue International filed separate appeals at the High Court, both seeking to quash PPARB's decision.

“The respondent (PPARB) made the decision without regard to several relevant matters that were brought to its attention and took into account irrelevant matters. As a result, the respondent arrived at a wrong and unreasonable decision,” says De La Rue International in court documents.

Fresh evaluation

The board had further directed the CBK makes a fresh evaluation of the tenders submitted to it within a fortnight.

“(CBK) is directed to undertake a fresh evaluation of all the tenders submitted to it by all the four bidders who participated in the tender process herein and complete the said process within a period of fourteen days,” the board had said in its last week judgment.

The tenders watchdog ruled that De La Rue did not qualify for the preference margin of 15 per cent applied, adding that the British printers was not the lowest evaluated bidder.

De La Rue has had a stranglehold on the Kenya’s lucrative money printing business except for the period between 1966 and 1985 when notes were printed by UK firm Bradbury Wilkinson, later acquired by De La Rue.