KAA fights Pattni Sh4bn award

The Kenya Airports Authority has presented additional evidence in a case challenging Sh4 billion award to businessman Kamlesh Pattni over duty free shops.

The State corporation claims it has unearthed a series of past court cases that reveal Mr Pattni did not own World Duty Free Company that in 1989 got licences to operate duty free shops at Kenyan airports.

In a supplementary affidavit filed in court on June 25, KAA lawyer Tom Macharia outlines a trail of cases that show that Mr Pattni was not a party to the 1989 deal he is seeking to benefit from.

Mr Macharia states that Word Duty Free Company was incorporated in the Isle of Man on December 5, 1989, and he has produced in court the firm’s certificate of incorporation.

According to the lawyer, this is the company that entered into the controversial exclusive agreement with the Kenyan government in 1989. The shareholders of the firm were Dinky International S.A. and Mr Nasir Ibrahim Ali, who, with a Mr Royal K. Zakariai, were shareholders of the former, says the lawyer.

In 1998, Mr Pattni sued Mr Ali and Dinky International claiming that he had acquired 100 per cent stake in World Duty Free Company Ltd and was entitled to full ownership of the company. According to the lawyer, this suit was heard in the absence of the respondents, and all orders sought by Mr Pattni were granted.

Arising from that, Mr Pattni filed proceedings in the UK seeking to enforce the orders from the Kenyan court in the Isles of Man, which was rejected.

“Upon failing to take over the World Duty Free Company Ltd that was incorporated in the Isle of Man, Mr Kamlesh Pattni incorporated another company in the British Virgin Island, which bears an identical name. The Isle of Man firm never transferred its interests to the company with identical name incorporated in the British Virgin Island, the lawyer alleges.

Mr Pattni is planning to file an objection to the additional material.