Ngilu might get call to testify in lengthy Kilimani land tussle

When she recently launched a  housing project reportedly funded by Chinese investors in Kilimani, Nairobi, suspended Lands Cabinet Secretary Charity Ngilu could not have imagined the kind of controversy the land on which she stood would stoke.

The launch of the construction of a 47-storey apartment complex  happened just a day after a court issued orders directing that no activity be allowed on the land pending determination of the suit.

However, the Sh200 million property, which is at the centre of a protracted ownership battle dating back to 2007, is just one of the many cases Mr Li Wen Jie, a Chinese businessman, has been involved in.

From Kibera Law Courts to the  Milimani High Court, Li Wen Jie, locally known as “Mr James”, has been mentioned in a number of cases  involving questionable land deals and boardroom takeovers involving other Chinese investors.

According to court proceedings, the land in Kilimani is being claimed by three companies; Delta Haulage Services Limited, Samvo Limited, and Catham Properties, where Mr Li is a director.

In another case pending before the Commercial Court, a Chinese tycoon is battling a takeover bid in a company that he claims to have been a major shareholder after his business partner had his name removed from the company register.

Mr Guo Dong, who claims in court documents to have co-founded Catham Property Limited with Mr Li, says he was shocked on May 25, 2015 when he learnt through a newspaper advert that he was no longer authorised to transact any business for the company.

JOINT TRADE

In his supporting affidavit filed before Justice Francis Gikonyo,  Mr Dong says he jointly traded with Mr Li as a director, holding 850 shares while his colleague had 150 shares of Catham Property.

Mr Dong is seeking orders to have the Registrar of Companies rectify the company register of Catham Properties Limited by removing Multi-Win Trading (EA) Company Limited and Pang Zhang as directors or shareholders of the company.

He wants the register to reflect the shareholding and directorship of Catham, and the two to remain as directors controlling 1,000 shares. Mr Dong also wants the court to direct the registrar to remove the names Ongalo Tobias Muga (T/A Ongalo & Company Advocates) and Christine Anyango Muga as advocates and Secretary of the Company, respectively.

But Mr Li,through his lawyer Gibson Kamau Kuria, has dismissed Mr Dong, saying he is prosecuting the suit in an oppressive manner.

He says in a replying affidavit that he has authority of both Catham and Multi-Win Trading, claiming that Mr Dong transferred his 850 shares.

“Since 2013 when I started interacting with Mr Dong, I have always known him as an attorney appointed by the two companies to incorporate them on their behalf and also hold shares in the same upon trust for them.

“I acted on the instructions of the two Chinese companies and transferred my shares to Catham while Mr Dong declined to do so claiming to be the beneficial owner of the shares which he held in trust,” says Mr Li.

He argues that Mr Dong’s appointment as attorney and trustee was revoked in July 2014, noting that he (Dong) is in a state of denial of the fact that he is no longer an attorney.

“It was because of holding himself as a director of Catham Properties Limited that the company published a notice in the media to the effect that he is no longer a director and therefore not authorised to transact any business,” said Mr Li through Kamau Kuria and Company Advocates.

Catham and Multi-Win Trading, which are Chinese-owned, have an investment portfolio of over Sh200 million in real estate in Kenya.

APPLICATION SEEKING COURT INTERVENTION

The case comes at a time when Delta Haulage has filed another application seeking court intervention to have Mr Li arrested for trespassing and demolishing permanent property on the piece of land.

Delta Haulage Services Limited also wants Catham Properties Limited to be forced to pay for the damages.

Delta filed a notice of motion seeking orders compelling Catham Properties Limited to deposit security amounting Sh58 million for damages until the ownership tussle that is still in court is heard and determined.

Delta Director Ali Mohamed Egal said in a sworn affidavit filed in court that the property on the plot was a permanent building which was razed to the ground when Catham took possession of the plot in December 2013.

Mr Li, while replying to demands by Delta Haulage Services, said he had no plans of absconding.

Mr Jie is claiming ownership of the prime land, saying that they were sold the property by Christopher Mugonye Wamae and Alexander Kungu Maina in 2013.

The two have also filed an application seeking to be enjoined in the case as interested parties, a move that is being objected to by Delta Haulage, who want them to appear as witnesses to the Chinese company, Catham Properties.

Samvo Limited, a company associated with Sarova Group of Hotels, and which also claims legitimate ownership of the 2.23-acre plot in Kilimani, says it is considering summoning to court Ms Ngilu to lift the lid on the intrigues surrounding the Kilimani land.

Samvo, through lawyer Stephen Mwenesi, argues that recommendations by Lady Justice Lucy Gacheru in her ruling of June 14, 2013, gave the company the leeway to summon anyone who could help unravel the mystery surrounding the land. Their cases will be heard early next month.

In May, Mr Li, was charged in a Kibera court with conning a foreign investor of millions of shillings in a fake land deal in Nairobi. His case is still pending in court. Action against Li came amidst increasing cases of land fraud involving Chinese investors.

According to court documents, the firm claims that on September 28, 2010, Mr Li, together with other people who are at large, stole the cash from an account held at Chase Bank’s Argwings Kodhek Road branch.

Mr Li Weng Jie has been mentioned in other land fraud cases in Nairobi that are still under investigation, including a Sh200 million plot in Kilimani which is the subject of another case.