High Court Judge Kenyatta Nyirenda on Tuesday stayed an order by the Review Committee of the Public Procurement and Disposal of Assets Authority (PPDA) for the Reserve Bank of Malawi (RBM) to retender the supply and delivery of ATS equipment and ICT Hardware for Flexi cube upgrade worth about K1.8 billion.
The decision further binds RBM from proceeding to issue the contracts until the conclusion of the hearing of the substantive judicial review case, slated for June 18.
Initially, RBM had offered the two deals to Market Insights Tracking but another bidder in the process, Sparc Systems Limited, objected to the decision, arguing that RBM flouted some rules in awarding the contracts, including that the successful bidding firm should have five years of experience in the business.
On February 9 this year, the PPDA Review Committee ordered RBM to re-tender part of the ICT contracts, a decision that prompted the Central Bank to seek the intervention of the court to ascertain the correctness, legality and propriety of the committee’s determination.
But, in his ruling on Tuesday, Nyirenda said he was satisfied that RBM had raised an arguable case in the matter.
“Having considered the evidence before the court as gathered from the sworn statements and the submissions by both sides, it is clear that the claimant [RBM] is questioning the correctness, legality and propriety of the defendant [PPDA Review Committee]’s decision faulting the claimant’s procurement process regarding two ICT projects,” Nyirenda said.