In a judgment Friday, the judges of the Court of Appeal faulted Kenya Railways Corporation, saying as the procuring entity, it failed to comply with, and violated provisions of Article 227 (1) of the Constitution and Sections 6 (1) and 29, of the Public Procurement and Disposal Act, 2005 in the procurement of the SGR project.
"We conclude, therefore, that the engagement of CRBC was not an obligation arising from "negotiated grant or loan" agreement for purposes of Section 6 of the Act," the judges said.
They added that the engagement of CRBC was not an obligation arising from "negotiated grant or loan" agreement for purposes of Section 6 of the Act.
LSK and Mr Omtatah further said there was no due diligence, there was no independent feasibility study and design of the project and there was a conflict of interest in the Government contracting CRBC to implement the project whose feasibility study and design it had intriguingly carried out for free.
But KR and CRBC defended the contract saying GoK entered into a financing agreement with Exim Bank of China for a concessional and commercial loan to support the project.
