CBK TAKES WAR WITH De LA Rue TO HIGHER COURT.

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De La Rue Company.

BY SAM ALFAN.

Central Bank of Kenya and De La Rue Limited moved to court to challenge Public Procurement Administrative Review Board decision that declared the tender issued to De La Rue as unlawful.

Both CBK and De La Rue now want Public Procurement Administrative Review Board decision set aside.

“The respondents by its decision rendered on 8th January is challenged on very serious jurisdictional breaches and substantial legal grounds as detailed in the statutory statement,” reads the court documents.

CBK argues that PPARB in rendering the said judgement acted ultra-vires by law by allowing a request for review that was filed out of the statutory period of 14 days.

De La Rue Through the company’s group commercial Legal Director Douglas Robert William Denham argue that the review board made a decision without regard to several relevant matters that were brought to its attention and as a result , it arrived at a wrong and an unreasonable decision.

“The respondent’s decision is erroneous and unlawful. It is based on a misapprehension on the relevant law,”…

De La Rue claims that the Board does not have jurisdiction to hear determine the request of Review filled out of time by a party that was not a bidder.

The case has been filed against Public Procurement Administrative Review Board, Crane AB, De La Rue International Limited, De La Rue Currency and Security print Limited and De La Rue EPZ LTD.

CBK on 30thNovember last year awarded a tender for the printing and supply of bank notes to the De La Rue International Limited.

However on 19th of December 2017 Crane Ab requested for review of the tender at the Public Procurement Administrative Review Board challenging CBK decision to award the tender to De La Rue.

Upon hearing of the said request the PPARB on 8th of January –this month rendered its judgment and allowed the request for review of the tender and annulled and set aside CBK decision awarding the tender to De La Rue Limited.

CBK claim that the tenders were evaluated and on 30th November 2017 CBK issued a notification letter to Crane Currency informing them that their bid was not successful and that the tender was awarded to De La Rue International Limited.

The procurement Board ruled that CBK violated the law by applying a 15 per cent margin preference meant for local firms to favor De La Rue International Limited, which is registered in the UK.

The Public Procurement Administrative Review Board (PPARB) consequently ordered CBK to re-evaluate the restricted tender for printing and supply of new design Kenya currency banknotes: Tender Reference No CBK/37/2017-2018.

“A declaration be and is hereby issued that De La Rue International Ltd was unlawfully awarded tender for printing and supply of new currency and that the application of 15 percent preference margin in its favor was unlawful and the award is therefore annulled,” PPARB chairman Paul Gicheru

CBK was also directed to undertake afresh evaluation of all tenders submitted to it by all the four bidders who participated in the process within 14 days.

The board’s decision was in a case by Swedish firm Crane AB that was the least evaluated in price which accused CBK of flouting the law and lack of transparency in awarding the lucrative deal to De La Rue International Ltd.

Crane AB, through lawyer James Gitau Singh told the board that De La Rue International limited is distinct from its affiliates De La Rue Kenya EPZ ltd and De La Rue Currency and Security Print ltd which are registered in Kenya.

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