Court saves Tsavo Securities property

The High Court on Wednesday saved the assets of former Tsavo Securities managing director Fred Mweni from the auctioneer’s gavel.

The court issued orders stopping the Central Bank of Kenya from selling Mr Mweni’s assets to recover Sh28 million in a case he is accused of illegally selling government bonds.

Mr Justice Francis Gikonyo granted the orders in an application filed by Mr Mweni after the regulator, on September 9, advertised to sell his property.

In the application, Mr Mweni accuses the Central Bank of Kenya of frustrating his efforts, and that of his former employer Tsavo Securities, to repay the debt agreed upon.

In October 2012, Mr Mweni entered into an agreement with CBK where his company was supposed to pay the bank an agreed amount of Sh48 million.

Tsavo Securities managed to repay Sh20 million leaving a balance of Sh28 million.

Mr Mweni said on December 21, he was removed from the board of directors of his firm, putting him in a precarious position after he had used family property to bail out the company.

“Consequently, I had no participation or control whatsoever in the management of the company,” Mr Mweni said in his court papers.

Tsavo Securities had, at the request of CBK, provided fresh directors who would be the signatories to the company’s account at the bank but this was not approved until January 24, this year.

“The deliberate delay in the approval of the signatories effectively meant that the company as well as the directors were completely put in a situation with no source of income and livelihood and in which they could not meet their financial obligations, especially payment of debts to CBK,” he said.