Court ruling paves way for new digital number plates

 

Former Transport Cabinet Secretary Michael Kamau displays a prototype of the proposed new generation number plates in 2015. The first phase of the project had targeted 6 million vehicles. [File, Standard]

A Netherlands-based firm has lost a case challenging a multi-billion-shilling tender to supply the Government with new-generation number plates.

The ruling now paves way for roll-out of the project that was to be implemented in 2015.

J Knierem Bv had sued the Government and Public Procurement Administrative Board (PPARB) last year, seeking to block implementation of the lucrative deal worth Sh2.2 billion by a local firm - Tropical Technologies Ltd.

The Dutch firm had complained that PPARB gave the tender to Tropical Technologies despite the company allegedly having failed to pass the technical evaluation stage because it had not obtained a manufacturer’s authorisation, which was a mandatory requirement at the bidding stage. But on Monday, High Court judge George Odunga threw out the case, noting that Knierem was reopening a case that had already been closed by PPARB and the High Court.

Justice Odunga said when the board made its decision, the company never bothered to challenge it.

“Where the Review Board makes certain determinations which are not upset by the High Court, the same may well be final. Accordingly, if the board did not make favourable determination as far as the ex parte applicant (J Knierem Bv) herein was concerned and the ex parte applicant did not contest the same,” ruled Justice Odunga.

Some 13 local and international companies competed for the lucrative tender for supply of hi-tech registration plates that the Government hopes will, among other benefits, assist in tracking car thieves.

The contract for the delivery of the hot stamping foils was split between German firm EHA Hoffman International GmbH at a cost of $20.7 million (Sh2.1 billion) and Ugandan’s MIG International Ltd for $1.4 million (Sh144.7 million).

EHA Hoffman was then awarded the contract to supply blank plates for three years at a cost of $6.9 million (Sh709.2 million). After the contracts were awarded, Tropical Technologies, representing a German manufacturer, complained to the Public Procurement Oversight Authority.

This prompted PPARB to strip Hoffman and MIG International of the two tenders after what it said were massive discrepancies in the evaluation process. MIG contested the decision, arguing that the tender award was legitimate and that PPARB never gave it a fair chance to defend itself.

After hearing the case, the judge referred the warring bidders back to the PPARB, citing irregularities in the tendering process. The tender was eventually awarded to Tropical Technologies. The smart number plates are a critical component of a wider security plan by the Government dubbed the Integrated Automated Management system in which new generation driving licences will also be introduced.

The move is aimed at deterring fraudsters who use their vehicles as collateral to acquire loans.