Crane AB, a multinational Swedish firm, has accused CBK of collision and of putting up a determined defence to award De La Rue the new currency tender. Crane AB, which claims to be the lowest bidder, said the tender will cost Kenyans Sh800 million more if awarded to De La Rue.
The Swedish firm has presented to the High Court findings from the Public Procurement Administrative Review Board (PPARB) which indicate it was the successful bidder. Crane AB would be awarded Sh10 billion every year for the currency printing tender.
However, De La Rue was awarded the currency tender after the government acquired 40 percent stake in the firm’s local subsidiary.
“It beggars belief why a procuring entity should actively seek to have De La Rue International be awarded a tender that will end up in a loss of over Sh800 million to the taxpayer,” Crane AB said.
Therefore, Crane AB has asked the court to disregard the application by CBK and De La Rue seeking to rescind the PPARB’s decision of terminating De La Rue’s contract. On the other hand, PPARB has asked the court to dismiss the application by CBK and De La Rue because it lacks merit. The board highlighted that De La Rue failed to show proof that the manufacturing of the new currency will use articles, materials, and supplies produced and assembled in Kenya. The board also indicated that De La Rue was not the lowest bidder, therefore, directing the CBK to assess the tenders submitted to it afresh within a fortnight.
Additionally, PPARB claims it nullified De La Rue once it discovered that the firm intended to subcontract the tender, if it went through, to an affiliate.
“The board found that a successful bidder could not subcontract before getting a contract in the first place,” PPARB stated.
