Blog Page 283

SENIOR NAIROBI COUNTY OFFICIALS CHARGED WITH 150 MILLION FRAUD.

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Peter Gitau Wanjera, Edna Nyaitond Mayiekai, Ephantus Gitonga Njoka, Allan Nyaga, Bernard Kigori and Charles Gatheru Mburu before Nairobi Anti-Corruption Magistrate Court.

BY NT REPORTER.

Seven Members of Nairobi City County have been charged before Nairobi Anti-Corruption Court with conspiracy to commit an economic crime contrary to the law.

Peter Gitau Wanjera, Edna Nyaitond Mayiekai, Nicholus Maina Mwangi, Ephantus Gitonga Njoka, Allan Nyaga, Bernard Kigori, Charles Gatheru Mburu and M/S Broadways Hardaware and General Supplies Limited denied the charges before Anti-Corruption Magistrate Rawlence Mugambi and denied the charges.

The court heard that they committed the offense on diverse dates between November 21, 2016 and November 30, 2016, in Nairobi City County in the Republic of Kenya being employees of the Nairobi County Government and the Director of M/s Broadways and General Supplies together with M/s Broad ways Hardware and General Supplies.

They are said to have conspired to commit an economic crime by fraudulently by inserting a bid security after the completion of the opening of tender for the supply, delivery and installation of Asphalt Plant along Nanyuki road.

Investigations by Ethics and Anti-Corruption Commission have since revealed that the officials substituted the tender documents which had a price of Sh50 million with one that contains a higher bid price of Sh150 million

The plea taking for Nicholas Maina, a senior aerial officer was deferred to August 2 after the court accepted the explanation given by his lawyer concerning his absence in court.

Mugambi has released each of the accused persons on a cash bail of Sh400, 000.

Alternatively they can pay a deposit of Sh1 million bond and a surety of similar amount to secure their freedom pending trial.

Adam Gedi, an officer with the EACC has been given up to August 3 to furnish the accused with documents and evidence to be relied upon during trial.

LABOUR COURT REINSTATES EMBATTLED KENYA RE CEO.

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former Managing Director Jadiah Mwarania.

BY NT REPORTER.

Employment and Labour Relations  Court  has ordered the reinstatement  of Kenya Re- Insurance  Chief Executive Officer Jadiah Mwarania.

In a ruling , Justice Byrum Ongaya, found that the decision to terminate  Mr Mwarania’s employment was unjustified and illegal.

The  court ordered the board to reinstate to same position and  provide him all  his salaries and benefits, saying tat he should be paid the entire money during the period he was out of  work.

Justice Ongaya said the money should be paid by September 1, failure to which it will still attract interest. Immediately after the decision, Kenya-Re asked the Judge to stop the delay the execution, pending an appeal. The corporation promised not to fill the position until the appeal was determined. But Justice Ongaya rejected the plea and asked Kenya-Re to make formal application.

The court said that it was clear that Mr Mwarania was willing to complete his unexpired term of 37 months and the circumstances that led to his sacking were not of his making. He said Mr Mwarania further desired to clear his name when he was invited to disciplinary proceedings but the Board did not give time to defend himself.

The Kenya Re-insurance MD said he asked for time to prepare himself, a request which was granted because he was sick only for him to report back to work and get the sacking letter.

“The Court having considered that having built his professional reputation, the said scar will seriously prejudice his circumstances and opportunities available for him to secure comparable or suitable employment, greatly diminished,” he said.

He said giving him a chance to continue working might give the Board a chance to deal with the allegations levelled against him while confirming his sacking may permanently deny him a chance of removing the scar of allegations leveled against him.

Mr Mwarania’s contract was renewed on the 12th of 2016 for a period of 5 years. He argued that prior to his termination letter dated 12th March 2018 he has served with various unwarranted letters touching on alleged shortcomings on which he responded to and was therefore surprised to be served with the termination letter.

TYCOON RAJU URGE COURT TO DISPERSE OFF DELAYED HEARING OF FAMILY LAND IN WESTALND, AND KICK OUT FRAUDSTERS.

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City tycoon Raju Sanghani with his lawyer before a Nairobi Court during the cross examination on commercial dispute case on Monday 16,2018/ PHOTO BY S.A.N.

BY NT CORRESPONDENT.

The  land  dispute case  filed in 2009, ought to be dispersed off in order to stop fraudsters from  claiming ownership of the suit property situated along Chiromo road, Westlands Nairobi.

The  land  dispute case  filed in 2009, ought to be dispersed off in order to stop fraudsters from  claiming ownership of the suit property situated along Chiromo road, Westlands Nairobi.

Mr Raju told Justice  Samson Okongo, a company trading as Fairmile Investment and  businessman Kantilal Patel have claimed ownership of the suit land registered under LR no 209/73/12 and purported to sell the same.

He told the court that he and  one  Jayant Rach are  the sole administrators of the estate of their father who died   testate in 2007 at Nairobi.

The  suit property is no longer in the hands of the Investment company and Mr Patel  the letters of administration and tittle is being held by  him and Rach up to date, he told the judge.

” All payments in respect of the suit property were made by the late father and his mother  who executed  ownership, saying that nobody can claim to own the land and purport to offer  it  for sell to third parties” the  court heard.

Mr  Raju  told the  in his evidence that, the investment company authorized his late father to process all documents to enable him register the property in his name.

He said that while  the issuance of  tittle was pending  in 2008 Mr Patel purportedly obtained a tittle of the suit land which he now claims to own the property.

 Mr Raju testified that  not withstanding the vesting of 1973 Mr Patel in flagrant breach of the law purported to sale the suit property at considerable price of Sh 12 million in November 2008.

The element of fraud has been between the directors of the Investment company and  Mr patel, while  knowing that they hold no tittle to the suit property that  is possession of the Mr Raju.

 The matter will proceed for further hearing on 18 September 2018.

SH40 MILLION PAID TO DMS CAN’T BE RECOVERED, GOVERNMENT WANTS DECISION SEASIDE.

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Communication Authority of Kenya Lawyer Wambua Kilonzo making submissions before Justice Chacha Mwita.

BY SAM ALFAN.

Communication Authority of Kenya (CAK) has challenged high court decision barring installation of the controversial communication monitoring Device Management System (DMS) suspended.

The government now says that it has paid over 40 million shillings for the design supply and commissioning of the DMS system which amount cannot be recovered.

This was revealed in documents filed by Communication Authority of Kenya (CAK) before court of appeal seeking to have the high decision that quashed the DMS tender.

Through lawyer Wambua Kilonzo, CAK argues that if termination of the tender on plans to spy phones is not set aside, the communication Authority is in danger of losing an amount of over 40.3 million shillings being the payments already made to the Broadband Communications Networks Limited.

The commission further says that CAK may be liable up to a total amount of 209 million shillings being the contract price which amounts cannot be recovered even at the point of success of the appeal.

Under a certificate of urgency, Lawyer Kilonzo wants a decision by High court Judge John Mativo that barred it from installing the controversial communication monitoring Device Management System suspended.

CA says that, Justice Mativo erred in law and fact by failing to hold that the petition before him was hypothetical.

They also claim the court erred in law by holding that the installation of the device management (DMS) system threatens to or violates the right to privacy of subscribers.

CA avers that the learned judge erred in fact by failing to appreciate that there was an ongoing consultation process in regards to the DMS between the regulator and the interested parties and further the process had not been concluded.

Judge said the plan by the Communication Authority, to install spy gadgets, was adopted in a manner inconsistent with the Constitution.

On January 31 and February 6, CA wrote to mobile phone service providers Safaricom Ltd, Airtel Networks Ltd and Orange-Telkom Kenya to allow the tapping of their computers by planting spy plant gadgets on all networks.

FIRM SEEKS SH 100 MILLION FROM HEALTH MINISTRY.

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Turn-O- Metal Engineers Company Director Surinder Sighn Birdi leaving after testifying before a Nairobi Court.
BY NT REPORTER.

Turn-O- Metal Engineers Company has filed a case seeking over Sh 100 Million compensation for special damages from the Ministry of Medical Services.

Surinder Sighn Birdi, the Managing director of the said company claims to have had rendered drilling services including drilling, construction and development of boreholes in the republic of Kenya.

Through lawyer Isaac Wanjohi from the firm of Michael Daud and Advocates, the company claims to have entered into agreement with the Ministry of medical services on November 17, 2005, being contract number WBH/03-01, lot 1 and 4 (ZONES and D) where he was to provide services for drilling, construction and development of boreholes in the North and North Eastern and Central Kenya.

The complainant claims that this was effectuated by the acceptance of a bid by the plaintiff which execute the drilling of boreholes for water supply for hospitals in the aforesaid region and when instructed by the Ministry.

“I supplied and provided the various services to the Ministry at their request,” said Birdi.

He claims that the Ministry in total breach of the agreement blatantly frustrated the Turn-O- Metal Engineers Company in effectuating the drilling of boreholes making it impossible for it to complete the drilling in Tim, leading to their extension of the time of the site.

Birdi claims that some of the frustrations were delay in granting possession of the site to him hence delay in the commencement of work, lack of supervision and proper instructions, Failure to provide the necessary boreholes statutory documents and cancellation of lot 5/Zone E.

He also said that the Ministry provided late and improper payments and they are now seeking for the payment of special damages amounting to Sh 101,939,381.79 being the sum payable for the services rendered.

“Despite demand and notices of intention to sue the Ministry and the A attorney General have refused to pay the above said outstanding of money owed to me,” said Birdi in court documents.

He is seeking general damages, Special damages and interest on (a) and (b) from October 31, 2010 until full payment, at prevailing commercial rates.

The Attorney General and the Ministry of Medical Services responded that they are strangers to some of the paragraphs in the complaint and put the company to strict proof.

They said that they are not aware of existence of any valid agreement with the company as alleged and if any which is expressly denied, the same according to them was invalid and contrary to the public procurement and regulations and put the company to strict proof.

“The suit in court is bad in law, incompetent and the defendants shall at the hearing raise a preliminary objection on point of law to have the entire suit struck out and be dismissed,” said Callen Masaka Litigation Counsel for Attorney General.

The response was filed on July 14, 2018 where the defendants denied all the allegations and put the plaintiffs under strict proof.

JUDGE MUTAVA WANTS SACKING VERDICT AGAINST HIM NULLIFIED.

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Former High Court Judge Joseph Muatava with his lawyer Philip Nyachoti and lawyer Kyalo Mbuba at Supreme Court after the hearing of a case which Justice Mutava want tribunal recommendation declared null and void on Wednesday July 18,2018/PHOTO BY S.A.N.

BY SAM ALFAN.

Former high court judge Justice Joseph Muatava now want the supreme court to quash the decision by the tribunal that investigated his conduct on allegation of corruption and the same be declared null and void.

The judge told apex court judges, that members of the tribunal acted illegally by conducting the proceedings when the complainants had withdrawn the allegations against him.

The bench comprising of Justice Philomena Mwilu, Jackton Ojwang, Mohamed Ibrahim, Njoki Ndungu and Isaac Lenaola, were told by the judge’s lawyers Kyalo Mbovu and Philip Nyachoti, that members of the tribunal conducted the proceedings when they knew, lacked jurisdiction to investigate the judge.

The complaints against the judge having been withdrawn, the members of the tribunal had no option but to terminate the proceedings, the lawyers argued.

” There was no single complainants that appeared before the tribunal in which they could have relied upon in making a recommendation to the President for removal of Justice Muatava” the bench heard.

” The complaints had not been re-instated in any form of shape to have warranted the tribunal to investigate” the judge.

All allegations against the judge were not supported by way of evidence, saying the members of the tribunal acted on their own motion and ignored objections raised by the defence lawyers who questioned the manner in which members of the tribunal conducted the proceedings.

The tribunal involved the director of criminal investigation in conducting the affairs of the judge, which was contrary to the judicial service commission Act.

The lawyers told the court that, the tribunal allowed witnesses to testify without advancing their statements to the judge and some gave evidence with no statements recorded as required by the law.

They pointed out that the tribunal relied on uncorroborated third parties evidence to make adverse recommendations against the judge.

Justice Mutava made appeal to the highest Court in the land challenging the decision of tribunal appointed by the President to remove him from the judiciary.

The judge has sought the decision delivered by the tribunal on 11 September 2016 be quashed for been made without jurisdiction and allegations against the judge were not proved.

Justice Muatava submitted that tribunal acted outside its jurisdiction and same was raised before it, but no action was taken.

The tribunal was presided over by the Chief Justice Justice David Maraga assisted by other six members.

They included Justice David Majanja, Mureen Odero, Omesh Kapila, Professor Patricial Mbote Mr Lawrence Mute and Mrs Jedidah Ntoyai, M’s Nazima Malik and Emmanuel Bitta acted as assisting counsels.

The five judges heard that the tribunal lacked jurisdiction to conduct any investigations against the judge’ saying that it was unconstitutionally constituted and recommendations arrived should be found to be null void.

The Judicial Service Commission had on 1 December 2012 received 13 complaints against the judge.

Justice Mutava was accused of irregularly and in collusion with some parties caused Kamlesh Pattni’s case to be placed before him for hearing and determination,
that the same was done without the knowledge of the head in judicial review division.

Justice Mutava was appointed to the bench on 23 August 2011 and at the time of complaints the judge had been deployed in the commercial and admiralty division of the high court in Milimani law courts.

MACHAKOS COUNTY TO PAY SH29.7 MILLION TO CONTRACTOR.

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Shaneebal Limited lawyer Julius Magos Ogemba.

BY SAM ALFAN.

Machakos County Government has been ordered to pay more than 29 million shillings to Shaneebal Limited.

Justice George Odunga made the order after a successful petition lodged by the company through lawyer Migos Ogamba.

“I enter judgement for the plaintiff against the defendant Kshs 29,772,;704.10 with interest at Court rates from 11 March 2016 when the demand was made till payment in full” ruled Odunga.

The amount is a balance for the purchase of mechanical equipment worth Sh260 million supplied to the county government by the company.

The judge found that , there was agreement between Machakos County Government and Shaneebal Limited for the supply of of mechanical equipments at an agreed price.

“It is clear from the evidence on record that the said equipments were supplied and that from the total of 260,601,000,00 million and 29,772,704,10 still remains unpaid” observed the judge.

The judge noted that the county failed to adduce any evidence in support of its pleadings, adding that the company fulfilled its contract.

Lawyer Ogamba during the hearing submitted that, his client had suffered and continued to suffer economic loss and prejudice because of the county government breach of the Local Purchase Orders (LPOs).

He further submitted the company suffered loss and damage as it failed to meet its various financial obligations and commitment due to the county government refusal and failure to settle the amount due and owing to breach of the terms of LPOs despite demand having been made and notice of intention to sue .

The company had supplied Machakos County Government the then local government with bulldozers,two excavators ,one lowbed boarder with a horse and wheel loaders.

The Machakos County Government to pay the cost of the suit.

KENYA DEPOSIT INSURANCE CORPORATION PUT ON THE SPOT FOR FAILING TO PAY FALLEN IMPERIAL BANK CUSTOMERS.

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Our of Imperial Bank branch in Nairobi.

BY BUSINESS TEAM.

Deposit regulator has been put on the spot for failing to reimburse money to Imperial bank customers.

Kenya Deposit Insurance Corporation (KDIC) failed to produce evidence in court on why it has refused to reimburse a group of Imperial Bank (in receivership) clients their money during the last three pay-outs made to depositors.

Through Wandabwa Advocates, Marc Das Gupta a director of Canyon Limited in response to KDIC application said that KDIC has made a decision to withdraw the petitioners, deposits held in the Bank in an unconstitutional manner.

He said that they were not accorded a fair hearing before deciding not to effect their payments and which they failed to do.

The director added that Central Bank of Kenya has never sought any clarifications from the said account holders.

Directors from various companies has challenged the receiver manager to show that the depositors’ accounts were linked to the fraud or that the money that was fraudulently disbursed from the bank ended up in their accounts.

The group of depositors made the application on November 20, 2017 against KDIC which responded through an affidavit by the CEO Mahmud Ahmed in May making claims that those accounts were linked to the banks directors and shareholders.

The depositors responded though an affidavit by Mr. Marc Das Gupta, on behalf of the 77 petitioners, saying that the blanket averment that all the petitioners are associated with the directors and shareholders of the bank is inaccurate terming the move to deny them their deposits discriminatory and unconstitutional.

“it is noteworthy to that no material has been presented here in or to this court or in any court for that matter to suggest that the monies fraudulently disbursed from the bank ended up with any of the petitioners here in,” reads the Affidavit by Mr. Gupta.

When the bank was put under receivership, CBK and KDIC contracted FTI Consulting to carry out an audit and in-depth investigation to the allegations of fraud but the report has never been presented in court.

“No material evidence has been produced in the said court, or in this court to substantiate the said supposed representations by FTI, on the basis of which the bank Directors and shareholders culpability can be discerned, on any standard” reads the Affidavit by Mr. Gupta.

“it is apparent from their replying affidavit that the Respondent has , in the exercise of its powers under the KDIC act no. 10 of 2010, has on account of matters therein made a decision to withhold the petitioners’ deposits , held in the bank albeit in a discriminatory , unreasonable and in a matter that is oppressive and unconstitutional,”

The submissions will be heard in court on July 31- this is the same day that the extended receivership period expires.

Central Bank of Kenya (CBK) and KDIC after bungling the receivership, invited the shareholders to participate in a parallel EOI process even after publicly blaming the fraud on the said shareholders.

Shareholders want the court to find CBK governor and Deputy personally liable should they lead recovery efforts into liquidation. Shareholders have fought the bank’s liquidation since it went into receivership in October 2015.

FORMER KENYA WINES BOSS JAILED FOR ONE YEAR.

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Former Kenya Wine Agencies Limited Managing Director Francis Emmanuel Oyugi alias Francis Oyugi Okuku before Nairobi Anti-corruption court after he was jailed for one year on Tuesday 17 July,2018.
BY SAM ALFAN.

Former Kenya Wine Agencies Limited Managing Director has been jailed for one year or pay a fine of 800,000 shillings.

Nairobi Anti corruption court Chief Magistrate Lawrence Mugambi found Francis Emmanuel Oyugi alias Francis Oyugi Okuku guilty for failure to comply with procurement guidelines.

“I do find that the prosecution has established the alternative count beyond reasonable doubts . I accordingly find the accused guilty and convict him” ruled Mugambi.

He was accused that on the 22 of July , 2003 in Nairobi being the managing Director of Kenya Wine Agencies Limited whose functions concerned the management of public revenue , willfully failed to comply with clause 1,2 and 3 of of the Manager’s Car loan Scheme of Kenya wine agencies limited dated 1 January, 1996 by authorizing the procurement of Tayota Land cruiser Prado without the approval of the Board of Director of Kenya Wine Agencies Limited.

The magistrate found that Mr Oyugi signed the LPO as well as the cheque a fact that they collaborated even by the document examiner.

“I find the accused’s participation in the entire process as hugely substantial” said Magistrate Mugambi.

The managing Director of Kenya Wine Agencies Limited defended himself that he did not take part in purchasing the said vehicle.

The magistrate his verdict judgment said the defence lacked merit.

But a employee of Toyota East Africa Limited said it was Mr Oyugi who visited the showroom on 16 7 of 2003 and selected the vehicle of his choice .

GOVERNOR SONKO’S RIGHT HAND MAN SUED FOR NEGLECTING CHILD.

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Nairobi County Secretary Peter Kariuki.

BY NT CORRESPONDENT.

A woman is demanding upkeep for a child she sired with Nairobi County Secretary Peter Kariuki.

Kariuki was formally working at the office of the Deputy President before his appointment to head the Nairobi County.

It is alleged that he has not complied with a court order directing him to pay for the upkeep of the child.

The order was issued on November 2017 by the court directing him to take care of the minor’s medical and provide Sh25, 000 monthly for food.

The mother, through lawyer Paul Elkington told the trial magistrate, that  the Mr Kariuki has neither responded to the application despite being personally served by a court process server and G4S services.

He has not denied being the biological father to the minor, this ought to have been demonstrated if he filed a reply to the application, the lawyer says.

The court was also told that the minor and two other children of Mr Kariuki from his marriage attend same school and church which aspect attest to the parents close relationship.

The mother has also offered to support the child by paying for the house help, driver and watchman as part of her parenting duty.

According to the lawyer, Mr Kariuki should be ordered to pay Sh2.5  million being maintenance for a full year and Sh150,000 monthly upkeep.

The court will deliver a judgement on August.