National Cereals and Produce Board to file new evidence in debt row

By Isaiah Lucheli

Nairobi, Kenya: A State corporation has been allowed to introduce new evidence in a suit where a supplier is seeking to recover Sh500 million over a breached contract.

The National Cereals and Produce Board (NCPB), through lawyers Katwa Kigen, Paul Gicheru and Joshua Nyawara, told the Court of Appeal that there was fresh evidence that indicated there were questions over the awarding of the contract to Erad Suppliers.

Kigen told judges Philip Waki, Roseline Nambuye and Kathurima M’Inoti that Erad had presented a cancelled performance bond, which had cast doubt on the awarding of the contract, and sought more time to file the documents.

Performance bond

However, it was later established that it was not the performance bond that was cancelled but the bid bond. The bid bond ceases to exist immediately the performance bond is issued.

Lawyer Ahmednasir Abdulahi, representing Erad, accused NCPB of failing to argue the suit that they had filed and engaging in side shows whose sole purpose was to delay the hearing and conclusion of the matter.

The court extended the orders issued three months ago restraining Erad from attaching and selling the State corporation’s assets until the hearing and determination of the suit.

The judges gave NCPB 14 days to file the additional information and directed Erad to respond within seven days.