Econet licence stays cancelled, court rules
Econet licence stays cancelled, court rules By RICHARD MUNGUTI THE High Court yesterday stood the decision taken by the Government to cancel a licence allowing Econet Wireless Kenya Limited to provide mobile services. Justice Mohammed Ibrahim said the court lacks jurisdiction to restrain the Government from cancelling the licence issued to Econet by the Communications Commission of Kenya (CCK). Justice Ibrahim in declining to reverse the decision by former Minister for Information and Communication, Raphael Tuju, to cancel the licence, said Econet was not clear over the kind of relief it was seeking. He said the order for prohibition was granted improperly and in breach of the principles of natural justice. "No allegations of illegality, impropriety or irrationality were made against CCK, yet it was restrained and injuncted in respect of some alleged deadline of payment of US$12 million which was not an issue from the statement issued by the minister revoking the licence and directing the commencement of the exercise anew," the judge said. He noted that Econet was seeking an injunction but instead applied for an order of prohibition by way of a judicial review. "In this application the prayer for injunction was 'hidden' in a different clothing and innocuously tucked away as a consequential order and made to appear as an integral and necessary part of the leave and stay," Justice Ibrahim noted. He added that "courts many times such applications are treated with a little more sacredness and solemnity that it would otherwise deserve." Justice Ibrahim had in November 2004 granted Econet leave to commence a suit against the minister and CCK challenging the orders. He had allowed the leave to operate as a stay of the minister's order to cancel the licence issued to Econet as the third Global System for Mobile Communications Operator (GSM) in the country. Econet was to join Safaricom and Celtel as mobile phone providers. Econet urged the court to restrain CCK from cancelling or suspending the licence issued to it even after the expiry of a deadline to pay a balance of US$12 million. The payment was not to be effected before the determination of another case commenced against CCK by Kenya Telecommunications Investment Group Limited. source : http://www.timesnews.co.ke/14apr06/nwsstory/news3.html
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Mike Theuri