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MAN LOSES BID TO BLOCK SALE OF WESTLAND SH42 MILLION PROPERTY.

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BY SAM ALFAN.

A home owner has failed to stop Diamond Trust Bank from selling his property located at Westlands for failure to service a Sh43 million loan.

Justice Alfred Mabeya dismissed the application by Vipul Jasvantral Sheth stating that the property had already in possession of third party.

The Judge said the sale by public auction was already conducted and the property is now registered in the name Hemkur Holding limited who was boni fide purchaser.

“The application has been overtaken event. The court cannot restrain a sale that has already taken place,” ruled Judge Mabeya.

Evidence tabled in court show that Jasvantral obtained a loan of Sh43 million from Diamond Bank ltd and which was secured by the said property.

And after failing to service the loan, the bank advertised the sale through public auction and was sold to Hemkur Holding ltd at Sh42 million.

Hemkur Holding emerged as the highest bidder as per court documents.

DEVELOPER FAILS IN BID TO STOP AUCTION OF KAREN PROPERTY.

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Housing Finance Company/PHOTO COURTSEY.

BY SAM ALFAN.

Elite Intelligent Traffic Systems ltd has lost bid to block Housing Finance Company ltd from auctioning a property in Karen.

Justice Alfred Mabeya dismissed the application by the developer seeking to stop the finance company from selling or transferring property known as L.R No. 209/1051/1 saying the company failed to demonstrate it rights were violated.

The judge said the Elite Intelligent failed to demonstrate the company’s rights were in anyway infringed by Housing Finance Company ltd that would require rebuttal.

Evidence presented in court showed that Elite Intelligent Traffic Systems ltd and Housing Finance Company ltd entered into loan agreement for a facility worth Sh364 million of which Sh95 million was for takeover from Kenya Commercial Bank (KCB) and the balance was for the construction of apartments on the suit property.

The court heard that on November 28, 2013, Elite Intelligent Traffic Systems created a supplementary Charge in favour of the defendant over a property as security for the loan of Sh.364 million in terms of the loan agreement.

It was Elite Intelligent Traffic Systems’s case that Housing Finance Company paid to KCB Sh.95 million but failed to disburse funds to it when needed for the construction of the apartments.

The failure to disburse the money allegedly caused the developer massive losses and when the finance company continued to dishonour its obligations, the company lodged the case seeking to block the sale.

However, Housing Finance Company realised its mistakes and opted to reach a settlement with the Elite Intelligent Traffic Systems whereby the Finance Company was willing to waive excess interest and both parties settled for a final settlement of Sh71,800,000 as the full debt.

The court add that despite the settlement agreement, Housing Finance Company acted unilaterally and reverted back to previous loan agreements in breach of the settlement.

Elite Intelligent Traffic Systems ltd argued that the Finance Company listed it with the Credit Reference Bureau for default whereas there was no time limit set for the payment of Sh50 million as per the settlement agreement.

That therefore, the Finance Company has given wrong information about the Elite Intelligent Traffic Systems ltd to other banks and which listing killed all chances of the plaintiff getting any other financier since the failure of Spire Bank.

According to the company Housing Finance has since received a demand letter from Housing Finance Company lawyers on August 10, 2020 stating that the Finance Company was unilaterally rescinding the settlement agreement and reinstating the loan facility despite the fact that the loan claimed was never advanced and further threatening to dispose of the suit property.

That as at the time of filing this suit, the Housing Finance Company was claiming a staggering sum of Sh. 174,125,294.95 and that unless the court intervenes, the plaintiff would suffer irreparable loss that cannot be compensated by an award of damages.

Housing Finance Company opposed the application through its legal manager and the subject application and suit do not raise any issues warranting a trial as it was only intended to delay the realisation of the bank securities and Elite Intelligent Traffic Systems ltd accepted a loan facility amounting to Sh.364,000,000 with properties known as L.R No. 209/1052/1 and L.R No.1160/330 being offered as security.

Court heard that the parties had agreed that Elite Intelligent Traffic Systems ltd would repay the loan facility without default or else the charged properties would be sold to clear or reduce the debt.
Nevertheless, the Elite defaulted.

Demands by the Housing Finance Company for regularization of the accounts were unsuccessful.
Housing Finance Company therefore contended that since the Elite had changed the scope of the development project and was sourcing for new equity partners or to borrow from other lending entities, it was unable to progress the plaintiff’s application for development financing.

The parties entered into a settlement agreement which was dependent on Elite Intelligent Traffic Systems fulfilling its obligations failure to which the agreement would be rendered otiose.

ENTERTAINMENT IN COURT AS WOMAN APPEARS IN COURT DRUNK.

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Middle Age Woman Sharon before Milimani Traffic Court where she was released on a cash bail of SH20,000 pending plea talking tomorrow./PHOTO BY IRENE ONYANGO.

BY IRENE ONYANGO.

An alleged girlfriend of a former politician from Western Kenya has been arraigned in court over charges of driving under the influence of alcohol.

The middle aged woman did not plead to the charges after she claimed the names appearing in the charge sheet were not hers.

Even after being presented before Principal Magistrate Martha Nazushi, the accused person was still drunk and snoring in court.

Sharon sleeping in court./ PHOTO BY IRENE ONYANGO.

The charges stated that Sharon Oparanya was found driving on a public road while under the influence of Alcohol to an extent of being incapable of having proper control of the vehicle.

She allegedly committed the offence on September 22, at about 0735hrs, along Ngong Road within Nairobi County,

The court released her on a cash bail of Sh20,000 after she failed to submit her national identification for confirmation of her names in the charge sheets.

She was directed to appear in court on September 23, for plea taking.

COURT REJECTS BID TO SUMMON CBK BOSSES OVER IBL’S RECEIVERSHIP.

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Central Bank of Kenya Governor Patrick Njoroge, his deputy Sheila Mbijiwe and board chairman Mohamed Nyaoga.

BY SAM ALFAN.

Former directors of collapsed Imperial Bank Limited have lost an application seeking the summoning of senior officials of Central Bank of Kenya to court to explain the move to place the lender under receivership in 2015.

Justice Alfred Mabeya dismissed the application saying the evidence of CBK Governor Patrick Njoroge, his deputy Sheila Mbijiwe and the CBK board chairman Mohamed Nyaoga will not in any way assist in the case before him.

The Judge said the issue of placement of the bank under receivership was not an issue before the court. He added that the receivership matter had been dealt with in another matter.

“Since there are no specific claims sought against CBK, my view is that to summon the intended witnesses, will not further the cause of justice. It’ll not assist the court at arriving at a just decision. The upshot is that the application is found to lack merit and is dismissed,” the judge ruled.

The bank sought to examine the senior officials on the issues relating to the process undertaken by CBK to place it under receivership.

Through senior counsel Ahmednasir Abdulahi said the three are relevant and indispensable to the just and effectual determination of the matter.

Janco Investments ltd, Gulshan Janmohamed, Mehdi Janmohamed, Naeem Shah, James Kaburu said the appearance was necessary for purposes of enabling the court to arrive at a just determination of the dispute.

Ahmednassir told the court that the entire process of placing IBL under statutory management was unlawful, a conspiracy by the Governor and his Deputy, for extraneous purposes that are best known to them.

The lender got into trouble following claims of malpractices following the death of its co-founder and long-serving group managing director Abdulmalek Janmohamed on September 15, 2015. There are claims that he was running a parallel bank within the lender.

The senior counsel argued that in October 2015, when CBK purported to place IBL in the hands of the Kenya Deposit Insurance Corporation, Njoroge was out of the country in Peru.

“On October 13, 2015, CBK had no duly constituted board of directors and thus was incapable of exercising its powers under the Banking Act of Kenya, Chapter 488 of the laws of Kenya and CBK Act of Kenya, chapter 491 of the laws of Kenya.

It is material for the court to know who made the decision “, Ahmednasir said.

He added that Imperial Bank was placed under statutory management of the KDIC was unlawful orders or instructions of the Deputy Governor Sheila M’Mbijjiwe.

“Besides the Bank being in a solid financial position, having a healthy loan book with no history of financial crisis, CBK purported to appoint KDIC as the Receiver of the Bank.

In supporting affidavit filed by Salim Janmohamed, the eleven told the court that it is imperative that both Governor Njoroge and her Deputy Sheila be summoned to shed light on the decision-making process leading to the closure of the Bank and who pulled the trigger in light of the absence of the Governor from the country and why and who closed the Bank if CBK was without board of directors?

They also want the trio to shed light on how many members of the board of directors were in office on the material date and whether the board of directors of CBK had a quorum.

The former directors want the court to be informed whether the Deputy Governor, on her own motion, placed the Bank under receivership or whether the decision was made jointly.

“We want the three to shed light on whether the chairman of the Board of Directors Mohammed Nyaoga called a board meeting deliberated on the issues and passed resolutions calling for the placing of the Bank under statutory management,” Ahmednasir said in the application.

They also seek to know whether the former Treasury CS who was in the UK, called Governor Njoroge and told not to place the Bank under Receivership.

TRADER DENIES DEFRAUDING ABC BANK SH60 MILLION.

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Ali Noor Abdi before Milimani Magistrate court where he denied defrauding African Banking corporation limited (ABC) bank./PHOTO BY IRENE ONYANGO.

BY IRENE ONYANGO.

A trader has been charged with conspiracy to defraud a lender of over Sh60 million through forgery of documents.

Ali Noor Abdi appeared before Milimani Senior Principal Magistrate Wendy Kagendo and denied the charges.

Abdi is accused of conspiring to defraud African Banking corporation limited (ABC) bank, of a fixed deposit debenture of Sh60,000,000 which was registered at the company’s registries.

He allegedly committed the offence on diverse dates between July 1, 2014 and 7th April 2020 in Nairobi within Nairobi County, jointly with another who has already been charged.

It’s alleged that the accused forged a certain search form in the name of ALLIED (E.A) Ltd purporting it to be a genuine search form, which was prepared and signed by Nicholas Oduor Oduol, a former registrar at the company’s registry.

The court heard that Abdi committed the offense with another Abdi Hamza who appears before another criminal court pending hearing and determination.

He was released on a cash bail of Sh500,000 as the court directed the case to be mentioned on October 6.

KRA BAGS HALF-A-BILLION IN TAX DISPUTE WITH DISTILLER.

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High Court Commercial Division Judge Alfred Mabeya who allowed taxman to collect over half billion millions from London Distillers limited./PHOTO BY S.A.N.

BY SAM ALFAN.

London Distillers limited has lost a Sh517 million tax dispute against Kenya Revenue Authority after the High Court that a waiver given to the firm by Treasury was illegal.

Justice Alfred Mabeya allowed the taxman to collect the tax arrears saying an application granted to the distiller by Treasury had no legal effect because the procedure for seeking such a waiver should be initiated by the Commissioner of Domestic taxes.

“…Treasury had no business to purport to allow the abandonment of 80 percent of the admitted taxes. That was extreme abuse of power of power on the part of Treasury,” the judge said.

The judge said the Treasury purported to exercise a power it did not have, adding that the decision by KRA to rescind the abandonment was not malicious.

“Accordingly, the respondent’s (Commissioner of Domestic Taxes) decision of March 2, 2022 was lawful and not illegal, irrational or unprocedural as contended. In the view of forgoing, the application application dated April 1, 2022 is without merit and is hereby dismissed,” ruled the Judge Mabeya.

London Distillers ltd sought to compel the taxman to comply with the decision dated January 1, 2022and accept payment of Sh80 million.

The company said it wrote and applied to Treasury cabinet secretary for abandonment of Sh517,118,680 which the company had collected as excise Duty in the course of its business.

The Treasury allowed the application and approved abandonment of 80 percent of outstanding principal Excise Tax and waived 100 percent of penalties and interest.

Following the deal, the distiller and KRA agreed on weekly payment of Sh7.5 million from February 2, this year. The distiller had already paid Sh55 million, when KRA rescinded the decision and demanded the entire amount within one week.

The company accused KRA of acting arbitrarily and assuming the powers of the Treasury CS and rushed to court to block the taxman from demanding the entire amount.

The company through Mohan Galot said that the stated consent referred to by the the taxman preceded the decision of Treasury.

He added that the decision of Treasury had not been rescinded and the purported rescission had been made by the taxman contrary to the law.

MICROFINANCE LENDER CHARGED WITH DEFRAUDING INVESTORS SH104 MILLION.

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Caroline Mumbi Kibaru of County Capital Limited before Milimani Magistrate Court where she denied the charges./PHOTO BY S.A.N.

BY IRENE ONYANGO.

The director of a microfinance institution has been charged with obtaining over Sh 104 million from investors.

Caroline Mumbi Kibaru of County Capital Limited appeared before Milimani Chief Magistrate Wendy Kagendo and denied the charges.

She is charged of obtaining total amount of Sh 104,753,400 from three different person.

Mumbi is accused of obtaining Sh 61,516,000 from Zipporah Waithira Muingai of by falsely pretending that she was able to invest in a collective investment scheme on her behalf.

The court heard that she committed the offence on diverse dates between January 1, 2015 and September 1, 2018 at Waterssys Plaza in Nairobi within Nairobi County,

The court also heard that she issued a bad cheque for Sh 500,000 in favour of Musyoka Munyambu on Family bank with knowledge that the said account number had insufficient funds.

She allegedly committed the offence on July 21, 2018 at Waterssys Plaza in Nairobi within Nairobi County, being a director of a county capital Ltd.

It is further alleged that Mumbi carried out a business as a collective investment scheme without a valid licence issued by Capital Markets Authority or Central Bank of Kenya.

The accused was released in a cash bail of Sh500,000.

The matter will be mentioned on October 6 for directions.

DUO CHARGED WITH EASTLEIGH SH120 MILLION LAND FRAUD.

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Guyo Guchana Halake and Samsom Kimani Kamau before a Nairobi Court./PHOTO BY S.A.N.

BY IRENE ONYANGO.

Two businessmen have been accused of obtaining Sh11 million by false pretending that they were in a position to sell land in Nairobi’s Eastleigh area.

Guyo Guchana Halake and Samsom Kimani Kamau appeared before Milimani Senior Principal Magistrate Bernard Ochoi and denied the fraud charges.

Guchana and Kimani are accused of conspiring to defraud Mohamud Hashi Abdi by falsely pretending that they were in a position to sell a parcel of land located in Eastleigh.

They allegedly said the land would cost of Sh 120 million, an offence they allegedly committed on diverse dates between 17th January and 29th March this year in Nairobi.

It is alleged that the two accused obtained a sum of Sh 11 million being an advanced deposit of the said parcel of land from Ahmednasir Abdulahi Advocates, who was acting on behalf of Abdi.

Guchana was produced in court under warrant of arrest which was issued against him by Milimani Chief Magistrate Court.

The court heard that Guchana has a pending matter before Taita Taveta Law Courts .

The court directed that Guchana to renain in custody after both the complainant lawyer and the prosecution opposed his release on bail saying he was a flight risk.

However,his co accused Kimani was released on a bail of Sh 3 million.

The matter will be mentioned on September 29 for directions.

COMPANY DIRECTOR CHARGED WITH STEALING MILLIONS.

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Bytech Savanna Ltd Bridget Gakii Nyaga and Elphus Mutuma Muriithi before court where they denied the charges. /PHOTO BY S.A.N.

BY IRENE ONYANGO.

A director has been accused of stealing close to Sh 5 million from a distributor of agricultural products.

Bridget Gakii Nyaga and Elphus Mutuma Muriithi appeared before Milimani Senior Principal Magistrate Bernard Ochoi and denied the charges.

Gakii is accused of stealing Sh 4,819,000 from Bytech Savanna Ltd, an offence she allegedly committed on 12th July this year, at Cooperative Bank Agha Khan walk branch, in Nairobi County.

It is alleged that the accused also conspired with Muriithi on the same date together with others not before court, to defraud Bytech Savanna Ltd of the money.

The court heard that they falsely pretended that they had supplied 580 Litres Pathway and 1550 bags of plant protection Gypsum to Bytech Savanna Ltd.

Each accused has been released on a cashbail of Sh 500,000.

The matter will be mentioned on 28th September for directions and determination.

COURT SEEKS ANSWERS ON DEPORTATION OF ZAMBIAN FACING SH170 MILLION GOLD FRAUD CHARGES.

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Zambian national Bupe Chipando before a Nairobi Court./PHOTO BY S.A.N.

BY SAM ALFAN.

A Nairobi Court has summoned the head of transnational crimes at the Directorate of criminal investigations to appear in court to explain how a Zambian facing fraud charges was deported from the country.

Milimani Senior Principal Magistrate Benard Ochoi summoned Hamisi Masa, the head of Transnational Crimes in court to explain the circumstances under which Bupe Chipando alias Elena was removed from the country.

The Zambian is charged alongside others with defrauding Dutch rally driver Bernhard Ten Brinke of Sh170.8 million in gold racket.

Bupe was allegedly deported following after he was arrested by Transnational and Organised Crimes detectives from his house in Ruaka.

He was deported on Sunday July 10 this year after Interior Cabinet Secretary Fred Matiangí signed his deportation order.

Police and immigration officials said they had investigated the matter and established Chipando was in the country illegally and engaging in criminal activities.

He was charged on May 11 with pretending to be in the gold selling business.

The Zambian national allegedly committed the offence on January 15,2021 in Nairobi. The charges stated that he obtained the millions from Brinke claiming he would sell him 500 kgs of gold.

It is further alleged that he conspired with others and defrauded Brinke by claiming that he was dealing in gold an offence he allegedly committed on diverse dates between September 1 and January 21, 2021.

The court ordered him to deposit a bond of Sh1 million or cash bail of Sh500,000 to secure his release.