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CBK governor Njuguna escapes arrest

19 March 2014, 18:55 William Korir

Nairobi - A judge has extended orders barring the prosecution of Central Bank Governor Njuguna Ndung’u.


Lady Justice Mumbi Ngugi extended the temporary orders that prohibit Prof Ndung’u’s imminent arrest.


The judge also allowed him more time to file further documents, which has been moved to seven days.


“I observe that Prof Ndung’u was allowed to file further suit papers on February 14, I order that he files and serve the anti- grafts body in seven days from today and they should respond within seven days,” Justice Ngugi said.


Prof Ndung’u’s lawyers Donald Kipkorir and Miller Junior said that the CBK boss was outside the county however the said documents would be filed and served before the end of the day.


He was expected to be arrested and charged following a directive from the Director of Public Prosecution Keriako Tobiko that he be prosecuted for irregularly awarding a Sh1.2B tender to install a modern security system at CBK.


The CBK boss who denies any direct involvement in the tender award, argues that he should not be arrested or charged with any corruption allegation and first secured orders halting his prosecution on February 14 by Justice David Majanja.


In a suit in which he has sued the Ethics and Anti-Corruption Commission, the DPP, the Inspector General of Police, the National Police Service Commission and the AG, the EACC claims it received a report detailing how the embattled CBK Governor flouted procurement procedures in the tender award by holding  discussions and directed the awarding of the tender to Horsebridge Network Systems East Africa Limited irregularly.


Allegedly, in the contract award in relation to the delivery, installation, testing and commissioning of the modern security system, 58 bidders bid the tender and only six who are AUA Industria, Ovad Ltd, IndraLtd, Axicon Kenya Ltd, Horsebridge and Engineered System Solution, responded.


In the evaluation, Horsebridge emerged the lowest bidder but CBK declined to award them leading the firm to file a review in the Public Procurement and Administrative Review Board.


The board ruled that CBK negotiates with the firm before finalizing the unsigned contract.


CBK’s deputy governor who chaired the tender committee quashed CBK’s technical evaluation team’s decision to award Horsebridge after it detected errors in the tender documents and the matter landed at the Public Procurement Oversight Authority and EACC.


Prof Ndung’u allegedly protested against the appeal and even rejected the advice of internal and external legal teams.


Although the EACC had allayed fears that the CBK boss would get orders  stopping his prosecution it insists that it cannot be barred from executing its mandate.


According to the Mr Tobiko there is enough evidence to charge Prof Ndung’u.


Horsebridge has also filed a separate suit seeking orders to compel the CBK to finalise finalise contract agreements and pay them a performance bond of Sh121.9M  as directed by the Public Procurement Appeals and Review Board (PPARB).


CBK claims there is an ongoing EACC investigation.

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