Postal Corporation of Kenya has been allowed - subject to competitive tendering – to have a licence for a  Sh3.2 billion satellite-link project, claiming it had been wrongly enjoined in the action by Universal Satspace (North America) LLC against the Ministry of Communications.

The High Court last week allowed the corporation that had been submitted by "licensed and legally competent service providers" for the VSAT project. However, the court barred the corporation from awarding the tender to any successful bidder until a case between Universal Satspace (North America) LLC and the Government is heard. Universal Satspace (North America) LLC currently provides Vsat services in the country.

Justice Mathews Emukule issued the orders on March 28 after hearing an urgent application by Postal Corporation of Kenya. He effectively varied the order issued on December 20, 2005, staying any dealings on the Vsat tender pending the hearing of an intended application by Universal Satspace.The order of December 20,2005 had been issued by Justice Leonard Njagi.

Through lawyer Kenneth Kiplagat, the corporation last month told the court that orders issued earlier in favour of Universal Satspace (North America) LLC had prevented it from opening tender submissions it had requested from service providers.

The court heard that the corporation had been wrongly enjoined as the second respondent in the Vsat provider's case against the Minister of Information and Communications.

In an affidavit sworn by the corporation secretary, Julius Shigoli, the corporation says it is not a party to the Vsat contract with Universal Satspace (North America). The Corporation claims the Vsat contract is void and outside the Kenya Communication Act.

The East African Standard