Cabinet Secretary Raphael Tuju has moved to secure his multi-billion empire from being liquidated over a Sh1.5 billion loan dispute.
The Jubilee secretary general has deposited Sh50 million in compliance with the Court of Appeal order, effectively stopping the East African Development Bank from auctioning his assets.
According to a letter addressed to the Registrar of the appellate court, Tuju said the money had been deposited in a joint interest earning account.
The letter read, “We write to confirm that this condition has been complied with. Our clients have deposited the cash in an interest earning account at NCBA Bank.”
The account is held jointly by Tuju's lawyers and those representing the bank.
The payment now gives Tuju, who was early this year involved in a road accident, a fighting chance with the bank as the appeal would now be heard and determined.
Tuju’s lawyers, for instance, say their client was not given a chance to argue his case in the UK and was not allowed to question witnesses who had been fronted by the lender.
Court of Appeal judges Martha Koome, Mohamed Warsame and Jamila Mohamed barred the regional bank from seizing and disposing of assets which Tuju had offered as security for a loan advanced to his company, Dari Limited, for property development.
However, the orders were to be enforced if Tuju failed to deposit Sh50 million in a joint account within 30 days.
The legal battle between Tuju and EADB has been full of intrigues with at least two judges recusing themselves from hearing the matter.
Last week, High Court judge Mary Kasango appeared to suggest that Tuju had given no indications at all of depositing the Sh50 million as ordered by the Court of Appeal.
"I have noted that the stay granted by the Court of Appeal was conditional on the depositing Sh50 million within 30 days. The plaintiff did not address their intent to comply with that condition and it, therefore, is unclear whether indeed the stay will subsist beyond the 30 days,"she stated.
In January, Justice Wilfrida Okwany accepted a judgment issued by a UK court against Tuju over the debt.
She said the bank had satisfied the conditions for the judgment to be enforced in Kenya.
Tuju, being dissatisfied with the decision, appealed. The court after hearing his matter, halted the implementation of the judgement by the United Kingdom court to attach his property.
Tuju and his children are fighting several suits pending in court, among them threats by the bank to auction their property and declare bankruptcy, for failing to repay the money.
Edited by R.Wamochie
