Former Central Bank of Kenya governor Nashon Nyaga who have been kicked out from 240 billion lucrative investment.
Tatu City Majority Shareholders have taken over the Sh 240 billion project and consequently kicked out Nashon Nyaga and Vimal Shah from the lucrative investment.
The resolution from the board of the majority shareholders, find that the project was brought to halt by the Nyagah and Vimal who have invested nothing to the project.
The board also kick out city lawyer Nelson Havi from representing the company on grounds that he was appointed by Nyagah and Vimal who had no authority do so.
The board members could not fathom how a lawyer not appointed by the board could file a lawsuit against the company’s majority board directors who have provided all of the financing for the project. Moreover, the lawsuit was filed with the support of minority directors Shah and Nyagah, who did not consult with the board before instructing Havi to file Case No. 46 of 2015. Havi, Shah and Nyagah also stated falsely to the High Court of Kenya that they had authority to file Case
In the consequence the board has appointed Ahmednasir Abdullahi to represent Tatu City has company lawyer.
They have instructed their new lawyer (Ahmednasir) to withdraw all suits filed Nyaha and Vimal against the company
The majority shareholders accuse Nyagah and Vimal of filing suits against the company through the law firm of Havi and company advocates without their authority
This comes after top consulting firm PriceWaterHouseCoopers (PWC) opted out from carrying out investigation into the accounts of Tatu City due to internal wrangle between the local and foreign partners.
The audit firm said shareholders have declined to execute document to pave way for audit to commence.
The Majority shareholders said Nyagah and Vimal insisted that PWC be the only auditing firm, the board ha since established that the local shareholders had good relationship with the firm.
Justice Ogola had ordered for the audit following a stand off between the shareholders on the actual position of loans taken to purchase land for the project. PwC said that shareholders have not agreed on the terms of loan.
“The letter of engagement has not been signed by the parties. There appears to be hostility between the parties which may not allow us to proceed. We are a professional body and some disparaging remarks have been made about PwC by one of the parties. We therefore seek to withdraw from the assignment,” PwC to commence the audit, but did not get a go ahead to investigate the accounts.
The audit report was intended to quantify how much money had been borrowed from the offshore financiers since the project started, and what balance is still owed to lenders.
Foreign partners Stephen Jennings and Hans Jochum Horn had in an application alleged that Mr Nyagah and Mr Shah had good relationship with PwC and that there was likelihood for them to use their closeness to influence the out come of the audit
The dispute has persisted since February and has slowed down the project. Mr Nyagah and Mr Shah alleged that the foreign partner’s wants them removed they manage the project alone
The foreign partners accuse their local partners for breach of contract by transferring land meant for the project.
Consequently the (CID) has recommended for the arrest and prosecution of Mr Nyagah over an alleged action to defraud real estate of Sh5 billion.
Detectives investigating transactions involving the project’s subsidiaries have concluded that Mr Nyagah used close relatives and associates to irregularly transfer shares worth Sh5.3 billion, and has recommended that he and five others be charged in court.
Mr Nyagah and two city lawyers Nelson Havi and Edward Osundwa have since obtained a court order stopping their arrest and prosecution.
The actions of the Tatu City Limited board, carried out in accordance with corporate governance and Kenyan law, to ensure that Nyagah and Vimal, who have invested almost no money in the project, can no longer block the creation of tens of thousands of jobs and homes at Tatu City.