ARBITRATION PROCESS

Linturi accused of fraudulently getting 50 million

Barons says claim by Linturi and subsequent award of Sh50m to him had already been paid before he launched arbitration process

In Summary

• Barons claims that in 2017, it was the Director of Atticon Ltd and not the Senator as alleged at the arbitration.

• Says  actions of Linturi are tantamount to attempted theft and are likely to leave the Barons Estates liable for the course of actions currently being undertaken.

Meru Senator Mithika Linturi
Meru Senator Mithika Linturi
Image: FILE

A company has moved to court, accusing Meru Senator Mithika Linturi of fraudulently receiving Sh50 million through an arbitration process.

In an application before the court, Baron Estates Ltd alleges that Linturi and his wife Emily Nkirote used Atticon Ltd to obtain the money without the consent of the board of directors.

Barons claims that in 2017, it was the Director of Atticon Ltd and not the Senator as alleged at the arbitration, thus Linturi had no authority and capacity to lodge a complaint before the arbitrator.

 

“The purported arbitration was not authorised by Atticon or its authorised organs, officers, agents, servants and or employees at the material time,” the company claims.

Barons Estates wants the court to stop all proceedings in the arbitration of Atticon Limited and Ushindi Credit Limited Versus Pesa Print Limited presided over by Sole Arbitrator John Ohaga.

Barons also wants to be enjoined in the matter, arguing that the case will directly and adversely affect their operations and interests.

Barons claim that they are likely to suffer irreparable harm to their rights and reputations if the case proceeds because they were the directors at the time.

Director Collins Ng’etich claims that Linturi and Nkirote were not directors of Atticon and had no right to approach arbitration on behalf of the company.

Ng’etich says that Barons Estates took over Atticon Ltd and acquired 50 per cent shareholding of the company. He adds that Linturi needed a quorum to be able to appoint an advocate to pursue any proceedings for them, which he didn’t have.

“The actions of Linturi are tantamount to attempted theft and are likely to leave the Barons Estates liable for the course of actions currently being undertaken before this Honorable Court,” Barons says.

 

“That the proceedings brought before the Honorable Court were brought with the express knowledge of the former Directors, being Franklin Mithika Linturi and Emily Nkirote signing the affidavits of the payments already being made an already concluded Loan Agreement and were brought with intent upon defrauding the Respondent and abusing the Arbitration process, and the Honorable Court further Abusing the Court process,” the company claims.

Ng’etich says that they have in their possession evidence and information that will prove that Pesa Print Ltd was frivolously, maliciously [acting and] intended to vex and defraud them money that was already paid to Linturi.

“The purported Arbitration, consequent award and or instant proceedings are a sham, unlawful, and have been hitherto been the work of impostors, fraudsters and or deceitful parties,” reads court papers.

Barons argues that should the Bill of Costs dated April 17, 2019, currently before Arbitrator Ohaga proceed, it is likely to be held liable for any double payments made, during which time it was a Director of Atticon.

Barons says the claim by Linturi and subsequent award of Sh50 million to him had already been paid before the arbitration process was lodged by the senator.

“Linturi was fully aware of the payment and further that any interests and costs so claimed by him are a consequence of a wrongly and or wrongfully filed suit and or arbitration against an innocent party,” he says.

Barons says that the decision to go to arbitration was never put before the Directors and that no quorum was called to discuss such a drastic action.