I was conned out of Sh173m, says dealer

The man who brokered the transaction in which City Hall bought a Sh24 million plot for Sh283 million on Wednesday claimed it was all above board.

Mr Maina Chege, the owner of Naen Rech Ltd, which sold the 120-acre cemetery land to the council insisted the deal was “pure, open, transparent deal and as white as cotton”. He also claims he was conned out of his Sh173 million, which was to be “profit” in the transaction and that he was paid only Sh9 million. “There is no scandal.

The only scandal came when lawyers denied me my sweat and took away my Sh173 million profit,” said Mr Chege who spoke at his lawyer’s office, Kibunja and Company Advocates in Nairobi.

Mr Chege said he decided to speak out on the matter, after lies and misinformation were spread on the issue, tainting his name and that of his company.

He defended the Sh283.2 million selling price, saying as a businessman, he was entitled to a profit, which he described as 100 per cent profit. “Just as other companies have to make profit to pay their employees and shareholders, so does Naen Rech Ltd.”

“I put in a bid, mine was not the highest or the lowest but I won the bid. What wrong have I committed?” asked the land dealer.

The cemetery land scandal has led to the suspension of top ministry of lands and Nairobi City Council officials by President Kibaki.

Mr Maina said although he sold the land to the council for a whopping Sh283 million, as was agreed, he had received only Sh9,450,000.

“When the advocates were paid the money by the council, greed erupted and what I was left with was peanuts. It is even shameful to mention the amount.”

He showed the Nation a copy of the notification of the tender award from Nairobi City Council dated November 13, 2008, signed by N W Otido on behalf of the town clerk.

The letter said in part; “...the City Council of Nairobi has accepted your bid for Tender No. CCN/MOH/T/020/08-09 …. for cemetery use and approved the acquisition of parcel of land No. L R 14759 situated in the South of Athi River Township in Machakos District...”.

However, the land dealer said up to today, he has not received “the balance of my profit Sh173,000,000”, which he said his lawyers were paid but did not remit to him.

“I came to learn that the City Council of Nairobi paid Sh283 million to our advocates, leaving Sh200,000 which they were due to pay, and it is from here our company was to pay our advocates fees as per remuneration order,” he added.

Mr Maina said he has since filed two cases against two law firms at the Milimani Court.

He added that the council was also yet to pay him Sh200,000, even after he wrote letters to its officials on the issue.