• DPP has been holding 37 vehicles belonging to CMC Di Ravenna during investigations into construction of two dams valued at Sh65 billion
The High Court has ordered the Director of Public Prosecutions to release vehicles impounded in a dams scandal to Barclays Bank.
The DPP has been holding 37 vehicles belonging to CMC Di Ravenna during investigations in which Kerio Valley Development Authority allegedly misappropriated public funds for construction of two dams valued at Sh65 billion.
Justice Francis Tuiyott ordered the DPP to surrender the vehicles to the bank to hold them as security for a loan owed by the Italian company.
“Barclays Bank shall give a written undertaking that it shall not transfer or remove from this court’s jurisdiction pending the hearing of the matter,” the judge ruled.
Tuiyott also ordered the two interested parties (DPP and DCI) to pull down tweets regarding the subject matter.
“The interested parties shall not interfere with the position until the matter is heard,” he said.
Barclays last week obtained orders to hold all 98 vehicles and equipment Di Ravenna had already purchased for construction of Arror and Kimwarer multi-purpose dams in Elgeyo Marakwet county.
The bank's lawyers argued that it fears the company is about to go under before repaying Sh595, 655,552 it borrowed to purchase equipment.
Lawyer Kamau Karoli submitted that the company has already filed a pre-insolvency case in Italy and that unless the court allows the bank to preserve the equipment, it will lose a substantial amount of money.
“Their insolvency case was admitted by the court in Italy, which shows they are not in a position to settle the debt owed to the bank. They are likely to proceed and dispose of their assets without repaying the loan if let to go,” Karoli said.
In their replying affidavit, the firm confirmed they have encountered financial challenges and commenced a pre-insolvency proceeding before the Court of Ravenna in Italy to prevent the company from being liquidated.
“The court appointed judicial commissioners to look into the financial situation and oversee the preparation of a reorganisation plan,” said Alfredo Fioretti, Rivenna's lawyer.
Justice Tuiyott granted orders stopping CMC Di Ravenna from transferring, selling or disposing of its assets until a suit by Barclays Bank seeking to recover the loan is determined.
“The court issues an order directing the company to forthwith deliver all motor vehicles and equipment listed in the asset finance agreement with Barclays Bank to Casuarina Ltd for purposes of preservation pending determination of the dispute,” Tuiyott ruled.
There is already controversy surrounding construction of the two dams, with the Director of Criminal Investigations leading the hunt for individuals suspected of misappropriating part of Sh65 billion meant for the projects.
Preliminary findings show money meant for the project was paid out and it was used to buy the vehicles that are the subject of the suit.
The total amount paid for the two projects is Sh20.5 billion
“The two projects were to be undertaken by a contractor by the name CMC DI Ravenna Itenera, Kenya branch. The project is funded by the Italian Government to the Kenyan government,” DPP lawyer Annette Wangia said.