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RBM faces setback in ICT equipment case

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The Reserve Bank of Malawi (RBM) suffered a setback last Tuesday when the High Court sent back its application in a case in which it is questioning the decision of the Public Procurement and Disposal of Assets Authority (PPDA) Review Committee in the case of supply and delivery of ATS equipment and ICT Hardware for Flexi cube upgrade.

RBM wanted the High Court to ascertain the correctness, legality and propriety of the Review Committee’s determination which ordered the retender of the two deals worth about K1, 825,866,022.30, which was initially offered to Mitra Systems.

Among others things, the PPDA Review Committee stated that RBM erred to award a contract to Mitra which had two years’ experience when the bidding document specifically said the bidder must have five years’ experience.

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Civil Review Cause number 13 of 2021 had RBM as the first applicant, Mitra as the second applicant and Sparc Systems Limited as the defendant.

Delivering a ruling on preliminary objections raised by Sparc Systems Limited, High Court Judge Kenyatta Nyirenda faulted RBM for dragging the wrong party in the case.

Nyirenda observed that having held that the applicable legal regime in respect of procedure is the Civil Procedure Rules, it was important that the proceedings be properly entitled, adding that having Mitra Systems and Sparc Systems Ltd as second claimant and first defendant are most misleading.

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Nyirenda said the fact of the matter is that RBM is challenging the decisions made by the Review Committee of PPDA and not Sparc Systems.

“Both Mitra Systems and Sparc Systems Ltd are interested parties in that they are most likely to be affected by the review proceedings one way or the other.

“Accordingly, it is ordered that the case should be entitled as follows: Judicial cause no. 13 of 2021 between the Reserve Bank of Malawi as claimant and Review Committee of the Public Procurement and Disposal of Assets Authority as a defendant with Sparc Systems Limited as first interested party and Mitra Systems as second interested party,” reads the ruling.

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