The Employment and Labour Relations Court has upheld the dismissal of Martin Omido by Consolidated Bank, ruling that the lender had lawful and sufficient grounds to terminate its ICT chief over interference in a major procurement process.
The court found that Consolidated Bank acted within the law and observed due process when it fired Omido in February 2023, dismissing his suit for damages and compensation for unfair termination. It, however, directed that part of the deductions made from his final dues be refunded.
Omido, who had served as head of Information and Communication Technology since 2016, was removed after internal and external audits concluded that he and another senior officer had improperly influenced the procurement of a new core banking system intended to upgrade the bank’s operations.
The findings indicated that he helped tailor technical specifications in a manner that favoured a particular bidder, repeatedly questioned the evaluation team’s work through written memoranda, and later supported a shift to direct procurement in a process in which he was also involved. A December 16, 2022 audit by PricewaterhouseCoopers determined that his conduct breached procurement laws and the bank’s internal rules, exposing the institution to financial, operational and reputational risk.
In rejecting his claim, the court held that the dismissal stemmed directly from his actions and was justified under the Employment Act. Omido had argued that his termination was unlawful and discriminatory, claiming he had not been furnished with the audit reports relied upon and that his role was confined to compiling user requirements. He also maintained that the memoranda he authored were advisory and prepared at the request of the then acting chief executive.
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The court was unconvinced, noting that audit evidence showed he had taken a “top-down approach” that aligned system specifications with one bidder. It further found that he challenged the evaluation committee’s conclusions and later recommended direct procurement in favour of MFI Technology Solutions Limited, while serving on the evaluation team.
The judge ruled that his actions amounted to unlawful interference in the procurement process, contrary to the Public Procurement and Asset Disposal Act and the bank’s internal procedures. As ICT head, the court said, his mandate was limited to gathering user requirements and did not extend to evaluating bids or questioning the committee’s determinations.
The dispute traces back to Consolidated Bank’s attempt to replace its ageing core banking system, whose licence was due to lapse in May 2022. An open tender launched in July 2021 drew nine bids and initially identified Inlaks Computers Limited as the preferred bidder. However, the award stalled after the acting chief executive declined to approve it, citing concerns raised in Omido’s memoranda regarding database costs, system specifications and evaluation criteria.
