Order on accounts freezing stays

Britam Group Board directors Agnes Odhiambo (left) and Peter Munga during the firm’s Annual General Meeting (AGM) held at the Safari Park Hotel in Nairobi on June 20, 2014. Financial services company Britam has posted a 22 per cent rise in after-tax profit buoyed by growth in insurance and asset management businesses. PHOTO | SALATON NJAU |

What you need to know:

  • Justice David Onyancha ruled that pending hearing and determination of the suit by British-American Investment Company (Britam) against the firms and its four former senior managers, the orders stopping transactions will remain in force.
  • Mr Nowrojee said the court has to protect its integrity to ensure that the final orders it gives are realistic and not for academic purposes.

The accounts of five companies involved in a legal dispute with a property investment firm will remain frozen over alleged fraudulent transfer of Sh3.9 billion.

Justice David Onyancha ruled that pending hearing and determination of the suit by British-American Investment Company (Britam) against the firms and its four former senior managers, the orders stopping transactions will remain in force.

PROTRACTED ARGUMENTS

The judge made the directive after protracted arguments by Britam and its former managers, Edwin Dayan, Elizabeth Nkukuu, Patricia Njeri and Shiv Arora.

At the same time, the four have moved to court seeking to block Inspector-General David Kimaiyo and the Directorate of Criminal Investigations from arresting them.

“They are seeking leave to be granted for an order prohibiting Mr Kimaiyo and DCI from arresting, harassing or in any other manner interfering with their liberty or property,” their lawyer Walter Amoko said.

They told the court that there are other cases concerning them on allegations of fraud, and that their arrest is meant to derail the suits.

Whereas the former managers and the companies sought setting aside of the orders barring accounts operations, Britam argued that lifting them would make their case useless since the four may use the money.

Through lawyers Fred Ngatia and Pheroze Nowrojee, the Nairobi Security Exchange-listed firm said an interim injunction serves to preserve the disputed property pending full determination of the dispute.

“Lifting of the injunction will cause such loss that cannot be reversed or compensated,” the lawyers said.

FRAUDULENT TRANSFER

“It is on that basis that interim orders freezing accounts of the respondents over suspected fraudulent transfer of Sh3,944,558,634 must be maintained,” Mr Ngatia said.

Mr Nowrojee said the court has to protect its integrity to ensure that the final orders it gives are realistic and not for academic purposes.

The former Britam employees appeared before a Nairobi magistrate’s court on Tuesday.

However, they were not charged after the Director of Public Prosecutions recalled their file and postponed their pleading to charges until Friday.