High Court Judge Hedwing Ongudi on Monday ordered the Ministry of Education to pay Vulcan Lab Equipment Sh150 Million for the breach of a 2007 contract.
The Ministry, headed by Fred Matiang'i, approached the supplier for a quotation which included prices and conditions for supplying science equipment.
The judge stated that the approach was made through the School Equipment Production Unit (SEPU).
[caption caption="Education CS Fred Matiang'i"]
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In his ruling, the judge declared that Sh94,279,202 paid to the supplier was for the value of the goods, Sh50 million should be paid for breach of contract and Sh5 million for accrued insurance premiums.
The court highlighted that evidence by the company's Managing Director Vishal Kacha confirmed that a deal was reached and documents were approved and stamped.
The company, through lawyer Mogere Guto, mentioned that it supplied the equipment with a pro-forma invoice that was received and stamped.
"The contract was for the supply of the equipment at Sh226,772, 450," the lawyer noted, affirming that the ministry was to pay 33% of the figure upon delivery of 50% of the goods.
He reiterated that the ministry issued a cheque of Sh75,086,880 and was to label the equipment to prevent pilferage and misplacement upon delivery to schools.
Guto divulged that after the Ethics and Anti-Corruption Commission (EACC) filed an application at the Kibera Law Courts and obtained an order that froze the company's bank account, the ministry rejected the supplies despite them having already been purchased by the Managing Director.
The ministry rejected them on grounds that the EACC was looking into the contract.
Guto stated that the failure of the ministry to honor the contract was illegal, unjustified and a blatant breach of the contract.
[caption caption="CS Fred Matiang'i"]
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