Vimal Shah fails to stop loan repayments by Tatu City

The Court of Appeal has allowed Tatu City to continue repaying loans advanced to the company for some of its projects.

The move was a blow to former Central Bank Governor Nahashon Nyagah and Bidco CEO Vimal Shah, who wanted the repayments stopped, pending a forensic audit.

The two had moved to court after they were ousted as directors of Tatu City and Kofinaf Company Ltd.

AUDITING
In their judgment, judges Philip Waki, Roselyn Nambuye and Patrick Kiage noted that all the parties were in agreement that the loans should be subjected to professional auditing and a timetable was set for the process.

They said High Court judge Eric Ogola correctly declined the invitation to inquire into the shareholding of the companies because it was beyond the scope of the application before him.

“The trial court, indeed, said more on the issue raised before it, but the summary shows clearly that the court laid a basis for the conclusions reached on each issue,” they said.

LOANS
The court dismissed the appeal and set aside the order suspending the repayment of the overseas loans by Tatu and Kofinaf.

The judges directed the two companies to continue making the loan repayments.

They also ordered the trial court to prioritise the hearing of the case to forestall further losses and prejudices being suffered by the parties.

REINSTATED
Although they were reinstated as directors by Justice Ogola, saying the ouster was improper, Mr Nyagah and Mr Shah faulted part of the decision of the judge, saying he made conclusive findings on the case.

The two had argued that it was wrong for Justice Ogola to decline an invitation to inquire into the make of the offshore entities’ respective contributions to the two companies.