Judge directs Gatabaki to quit Sh30bn project
The Sh30 billion housing project in Kiambu is back in court.
Mrs Nancy Gatabaki, who was awarded Sh725 million in cash and property to allow the Fourways Junction project to go on, is seeking the interpretation of the consent order signed before Justice Mohammed Warsame on September 6, 2011.
Her lawyer, Mr Ashford Muriuki, claimed that she was being compelled to sign documents in the transaction without involving him.
But Mr Cecil Miller for Suraya Property Group, which is undertaking the project, said that was procedural.
He said she should have resigned within 14 days of receiving the first cash instalment of the award.
Mr Miller said he had released Sh140 million to her as ordered by the court.
He told Justice Warsame that under the consent order, she should have stepped down as director of Muga Developers Ltd pending registration of a new company where she and her husband would hold 33.3 per cent shares.
“The plaintiff was required to quit the company as agreed when she withdrew the case which threatened to stall the completion of the mega project whose construction is being undertaken by a Chinese company,” Mr Miller told the judge.
He urged the court to compel her to resign in three days “failure to which the registrar of companies shall strike her name out of the company register.”
Mr Miller pledged to register Muga Holdings Ltd which will manage hotels and shopping malls in the property.
In his brief ruling, Justice Warsame directed Mr Miller to register the new company within seven days.
He also ordered Mrs Gatabaki to resign from Muga Development Ltd.
The parties return to court on October 26 to report whether they have obeyed the orders.
“Failure to observe the court orders shall be deemed that any party shall be held in contempt of court,” the judge ruled, adding: “All lawyers must work together to ensure full compliance.”
Mrs Gatabaki first moved to court early this month, demanding compensation for her land for the multi-billion shilling project to take off.
