Mombasa-based English Point Marina Beach Hotel has written to the DCI over suspected tampering with the business’s bank accounts.
In a letter to Directorate of Criminal Investigations director Amin Mohamed Ibrahim dated December 8, 2022, and copied to the Central Bank of Kenya, the hotel management wrote to the investigative agency asking for intervention.
The letter’s reference said the hotel was requesting “intervention on a matter relating to suspected serious fraudulent activities in relation to the bank accounts belonging to Pearl Beach Hotels Limited”.
In the letter, English Point Marina Beach Hotel said the bank agreed to advance Pearl Beach Hotels a total cumulative Sh5,342,886,832 for purposes of funding the development and construction of a fully serviced five-star marina on Mainland North Mombasa.
The management said the loan was secured by various securities including but not limited to legal charges, guarantees as well as fixed and floating debentures.
“It was a term of the various loan agreements that proceeds from the sale of the apartments constructed by Pearl Beach Hotels Limited would be deposited in an escrow account and would then be used to offset the principal loan amount due to the bank,” the letter reads.
English Point Marina is owned by Amin Kanji, his wife Leila, brother Alnoor, sister-in-law Nafisa and Nazir Jinnah.
Pearl Beach Hotel borrowed a total of Sh5.2 billion between 2010 to 2016 for the construction of a fully serviced 5-Star English Point Marina.
The loans were advanced in the form of a development finance facility, which would be sold to offset the debt.
The hotel was completed in 2017 and according to the bank, the developer was unable to service the loan but the lender accommodated the company on numerous occasions.
Last month the hotel sought to have directors of the bank cited for contempt of court following the acrimonious takeover last month.
The hotel through its lawyers accuses the bank of misinterpreting court orders that were issued to take over the hotel under receivership and now wants the appellate court to intervene.
“Unless the application annexed hereto is heard as a matter of urgency and the respondents cited for contempt of court, the intent of the honourable Court of Appeal towards furthering the ends of justice by its orders in the civil application will be deliberately and maliciously diminished by the Respondents,” the hotel says in an application dated October 11, 2022.
Justice Chepkwony had suspended the bank’s move to appoint Kamal Bhatt as the receiver manager and administrator over a Sh5.2 billion debt claim pending the hearing and determination of a suit filed by Marina’s parent company, Pearl Beach Hotels Ltd.
“We hereby give our decision granting the ruling and orders of the honourable Lady Justice Dorah Chepkwony delivered on July 12, 2022, and stay any further proceedings in High Court commercial court pending the hearing and determination of the applicants’ intended appeal,” the three-judge bench of the appellate court ruled.
English Point Marina returned to the Court of Appeal seeking clarity over its orders that the bank used to take over the facility through a receiver.
“It’s imperative that this honourable court clarifies its order of October 4, 2022, which on proper interpretation the meaning now remains uncertain," the application by English Point Marina through the law firm of Conrad Law Advocates reads.
"The court has jurisdiction to clarify an ambiguity in its ruling.”
In an application dated November 5, 2022, English Point says although the Court of Appeal suspended proceedings at the high court, the various orders issued by Justice Dorah Chepkwony still stand.
“The orders of the Court of Appeal did not stay any additional orders and directions of the High Court that were delivered by the honourable Lady Justice Dorah Chepkwony on June 7, 2022, which are still in force pending the determination of the application dated June 6, 2022, by the present applicant," English Point said.
Through its director Jinah Nazir, English Point claims the bank and the receiver have unlawfully and illegally continued to disobey the said court orders, while continuously exposing him to untold and irreparable harm.
“Bearing in mind that the English Point Marina is a major development and significantly large hospitality establishment and business in the Coastal region, the applicant continues to incur irreparable harm and financial loss and reputation from the actions of the Respondents herein.”
