HOTEL LOAN DEBT

High Court to decide Tuju contempt case on Thursday

He is alleged to have refused to grant access to two receiver managers from bank he owes Sh1.5 billion

In Summary

• The bank wants Tuju and his three children committed to civil jail or be fined for failing to grant access to the managers.

• But Tuju said the bank is fully secured by two properties in Upperhill and Karen. 

Jubilee Party secretary general Raphael Tuju on March 29, 2017.
Jubilee Party secretary general Raphael Tuju on March 29, 2017.
Image: FILE

Cabinet Secretary Raphael Tuju on Thursday will know if he will be punished for defying a court order that compelled him to grant access to two receiver managers to his Karen property over a Sh1.5 billion defaulted loan.

Justice Mary Kasango had on March 25 directed the Dari Limited director to allow the managers appointed by the East Africa Development Bank – Muniu Thoithi and George Weru - access to the Karen property.  

Tuju was also required to provide the receivers with Dari’s statement of affair, financial returns and company records, cash book as from December 23, 2019, to date, the management accounts, the debtors and creditors listing and the company's staff payroll for the last three months. None has been complied with so far. 

The bank wants Tuju and his three children committed to civil jail or be fined for failing to grant access to the managers.

Lawyer Fed Ojiambo on Monda told the court that it’s clear Tuju has never complied with any court order and the same should be acted on.

But Tuju, through lawyer Paul Nyamodi and Paul Muite, said he was denied his constitutional right to be heard over the alleged disobedience of court orders.

The court heard that the bank is fully secured by two properties in Upperhill and Karen, hence its conduct to enforce the court orders is concerning.

The loan was meant for the construction of a Sh100 million two-storey, flat-roofed bungalows and the purchase of a nine-year-old bungalow build by Scottish missionary Dr Albert Patterson.

The bungalow currently operates as a high-end restaurant.

Edited by R.Wamochie 

WATCH: The latest videos from the Star