Court seeks progress report on CBK security deal probe

Politics and policy

Central Bank of Kenya governor Njuguna Ndung’u. Photo/FILE 

By BRIAN WASUNA

In Summary

• High Court judge Weldon Korir issued the orders in a suit in which Horsebridge is seeking to have CBK compelled to award them the tender.
• The CBK had through its lawyer Waweru Gatonye questioned why the investigations had taken long to conclude during its final arguments, prompting the judge to issue the orders.

The High Court has ordered the Ethics and Anti-Corruption Commission (EACC) to submit a progress report on its investigation into the award of the Central Bank of Kenya’s security tender.

 

The anti-graft watchdog has been investigating CBK governor Njuguna Ndung’u since March last year over suspected irregularities in the award of a Sh1.2 billion tender to Horsebridge Network Systems, an information technology firm.

On Wednesday, High Court judge Weldon Korir issued the orders in a suit in which Horsebridge is seeking to have CBK compelled to award them the tender.

“The matter will be mentioned on Monday. EACC is to provide the status of investigations, including where they have reached. I will give a judgment date afterwards,” said the judge.

The CBK had through its lawyer Waweru Gatonye questioned why the investigations had taken long to conclude during its final arguments, prompting the judge to issue the orders.

“One or more of the bidders is the one that provided the intelligence to EACC and it is upon this investigation was initiated. It is not impossible to speculate that EACC and the DPP are being used to further personal interest in the guise of public interest,” he said.

Orad Limited, Azicon Kenya Limited, Engineered Systems Solutions, Indra Limited and Aua Industria had also bid for the tender.

Horsebridge echoed Mr Gatonye’s sentiments by saying they recorded statements with the EACC in March last year, and were yet to get feedback.

“There has been no indication that Horsebridge will be charged. The other bidders cannot now delay the process because of pending investigations,” said Mr Andrew Wandabwa who is representing the IT firm.

He further questioned why the other bidders had not been investigated as they were the ones that gave the EACC the basis for the inquest into the tender award process.

The IT firm moved to court in March claiming that CBK had declined to award them the tender despite being advised to do the same by the Public Procurement Oversight Authority.

READ: IT firm moves to court to demand CBK security tender

The dispute between Horsebridge arose as Prof Ndung’u was entangled in another suit seeking to stop orders from the Director of Public Prosecutions to arrest him over alleged irregularities in the award of the same tender.

EACC defended itself saying it was only fair that it was accorded time to finalise the investigations to ensure no corruption or economic crime was committed in the tender award process.