FOREIGN FIRM DEMANDS SH7.1 BILLION FROM DEVOLUTION MINISTRY.

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Lawyer Harrison Kinyanjui for Spencon Services Limited which is embroiled in a court battle with the Ministry of Devolution and Planning over Sh791 million leaving Milimani law courts on Tuesday April 26, 2016.

BY SAM ALFAN.

A foreign company is embroiled in a court battle with the Ministry of Devolution and Planning over Sh791 million.

Spencon Services Limited was awarded a tender by the defunct ministry of local government, to do some works at municipal council of Mombasa in 2013.

The company performed two contracts by offering, Electrical, Mechanical and Sewerage works for the municipal council but a dispute arose when the ministry of devolution and planning took over the contracts.

The dispute went for arbitration and the company was subsequently awarded a sum Sh795, 801,041.03 with interest of 19 per cent from 26 March 2015.

Devolution ministry through the office of the attorney general filed a petition in the high court seeking  to set aside the arbitration award.

On Tuesday when the matter came up for directions before Justice Charles Kariuki, the aggrieved company through lawyer Harrison Kinyanjui told the court the challenge to arbitration award was time barred.

Mr Kinyanjui urged the court to hear the matter expeditiously to save the company from the debt owed  to it by the government.

The court heard that the petition seeking to nullify the award is unorthodox and illegal, is fatally defective and should be struck out with costs.

Mr Kinyanjui said that the arbitration proceedings were commenced with consent of parties, saying the attorney general had directed that payment should made to the company.

He said that the court is not within statutory power to set aside or refuse to enforce the awards of the arbitral tribunal.

It is not denied by the Ministry of devolution and planning that the arbitrator conducted the arbitration in accordance with the law and all the parties were heard.

“The challenge to arbitral award can only be done under section 35(2) and 35(3) of the \Arbitration Act,” he said.

The claimant executed the relevant works in favor of the devolution and planning ministry’s predecessor and a dispute arose on settlement of the sum due.

The Judge directed parties to file their submissions. The matter will be heard on May 4.

 

 

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