Currencies

High Court suspends cancellation of new currency tender award

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

The High Court has suspended Public Procurement Administrative Review Board (PPARB)'s decision to cancel the award of new currency printing tender to De La Rue.

The suspension is applicable until a case filed by Central Bank of Kenya and De La Rue is heard and determined.

The order by Justice George Odunga followed separate applications by CBK and De La Rue.

The banking regulator argued that since the board has given 14 days within which the review to start afresh, it's in the interest of justice the decision is suspended pending hearing and determination of the suit.

Pending determination

"Leave is hereby granted to both applicant (De La Rue and CBK) to file substantive application within five days.

"The said leave to operate as stay of the decision of the respondent made on 8th January pending hearing and determination, " ordered Justice Odunga.

The contract was terminated 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 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.