A decision
by the Communication Authority (CA) to terminate a Sh4 billion revenue system
deal has been challenged.
Two foreign
firms say they had met the mandatory eligibility and technical requirements,
including an annual turnover of Sh25 billion (US&200,000,000) for the last
three years only to be surprised when the tender was terminated midway.
Last month, on the 14th, CA cancelled the tender CA/SCM/PQ/06/2024-25 referred to as open
international prequalification for the provision of Revenue Assurance System
(RAS).
An American
firm that had jointly bid with a South African company has moved to court
seeking orders to compel CA to proceed with the procurement.
Mobileum
Inc., from Delaware, USA and TrillCom Pty Limited from South Africa moved to
the Review Board three weeks ago to protest the cancellation.
The two
firms claim in papers filed at the Public Procurement Administrative Review
Board (PPARB) that CA violated the constitution and procurement law by purporting
to terminate the process.
The firms
insist that the CA’s actions amount to a violation of their constitutional
right to fair administrative action under Article 47 of the Constitution,
adding that public bodies exercising statutory powers, the respondents were
under a legal duty to ensure that any administrative decision, particularly one
with adverse consequences, was lawful, reasonable and procedurally fair.
“This duty
includes providing prior notice, a fair opportunity to be heard, and a clear
statement of reasons. CA’s failure to observe the minimum standards offends the
rule of law and renders the decision constitutionally infirm.”
Application
No. 88 of 2025 was filed on 6th August 2025 through the law firm of Allamano
& Associates and an affidavit sworn by TrillCom PTY Ltd Chief Operating
Officer Thabiso Madonsela.
The bidders
are seeking, among others, an order directing the CA to forthwith reinstate the
procurement process and to proceed with the evaluation and conclusion therefore
strictly in accordance with the tender requirements and the governing law.
They have listed
CA Director General David Mugonyi as the first respondent and the CA board as
the second respondent.
The case was
heard on Tuesday, where CA defended their action, saying the decision was made
in good faith and in line with the law.
The PPARB is
expected to issue their verdict on notice.
