Tuesday, June 12, 2012

Ex-MP seeking compensation

Former Taveta MP Basil Criticos at his Grogan castle hotel in Taveta.

Photo|FILE Former Taveta MP Basil Criticos at his Grogan castle hotel in Taveta.  

By PAUL OGEMBA pogemba@ke.nationmedia.com

Former Taveta MP Mr Basil Criticos is seeking Sh3 billion from a bank as compensation for damages over the sale of his land in 2007.

He claims that he has suffered damages as a result of the unauthorised sale of his 15,994 acres of land by the National Bank of Kenya, as the bank sought to recover a Sh20 million loan.

The land was purportedly used as guarantee to secure the loan but Mr Criticos claims that the guarantee had been discharged and that it was only for past considerations.

National Bank sold the land in 2007 for Sh55 million, an amount the former MP claimed was a gross undervalue of the actual price.

As a result of the sale of his land, Mr Criticos said he has suffered loss of future earnings and profit from the sale of sisal.

“The claims for damages are based on the current market value of the land and the properties developed in it.

Had only 14,000 acres been sub-divided and sold at Sh100,000 per acre, the total price would have been Sh1.4 billion,” Mr Criticos says in the court papers.

Among the losses he claims he has incurred are buildings, 11,638 acres of land, a quarry, 4,200 acres of sisal plantation and an estate road network all valued at Sh3 billion.

He wants to be paid the amount together with interests at court rates from the date when his land was sold in September 2007.