Bank ordered to cede hospital accounts to Assumption Sisters

St Mary’s Mission Hospital in Lang'ata, Nairobi. A court has ordered Prime Bank to hand over three accounts operated by St Mary’s Mission Hospital to the new management. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • Last year, the court granted the Assumption Sisters of Nairobi property rights to St Mary's Mission hospitals in Nairobi and Nakuru.
  • The nuns moved back to court accusing Prime Bank of refusing to disclose information regarding the accounts operated by the facility.
  • The bank said the hospital operated three accounts with the bank while the other two were private accounts operated by the missionary. They sought clarification on which accounts should be given to the nuns.
  • Justice Sila Munyao clarified that it was only the three accounts operated by the hospital which should be handed over.

The Environment and Land Court in Nakuru has ordered Prime Bank to hand over three accounts operated by St Mary’s Mission Hospital to the new management.

Justice Sila Munyao in his ruling on Thursday issued the orders directing the bank to assign the three accounts registered in the name of the hospital to the Assumption Sisters of Nairobi (ASN), who were declared the legal owners of the multibillion properties in Nakuru and Nairobi.

“It is the order of the court that the Prime Bank hands over the accounts registered under St Mary’s hospital to be operated by the Assumption Sisters of Nairobi,” said Justice Munyao.

BANK ACCOUNTS

While awarding the Catholic nuns the property ownership rights last year, Justice Munyao further ordered American Missionary Priest William Charles Fryda, who is also laying claim to the hospital, to disclose and surrender all the accounts owned by the hospital to the ASN.

The nuns, however, after taking over the management of the two hospitals in what was seen as a forceful takeover, moved back to court accusing the bank of refusing to disclose information regarding the accounts operated by the facility.

They sought to file contempt charges against the bank, prompting the court to order for all the accounts to be frozen.

The bank, however, defended itself, saying that it could not disclose the information of the personal bank accounts belonging to Dr Fryda.

ORDER

Through its lawyer Wangai Maina, the court heard that the hospital operated three accounts with the bank while the other two were private accounts operated by the missionary.

“The law does not allow us to disclose personal and private accounts of our clients as sought by the Assumption Sisters of Nairobi. We seek clarifications from the court on which specific accounts should be given to them,” said Mr Maina.

But Justice Munyao in his ruling clarified that it was only the three accounts operated by the hospital which should be handed over.

Last year in September, Dr Fryda lost the case seeking to eject the nuns from the hospital premises for allegedly interfering with the running of the health facility. He had filed the case in 2011.

He claimed to be the legal owner of the hospitals, which according to him were built using donor funds to provide affordable medical services to the poor.

Later, he sued Cardinal John Njue for allegedly forcing him to hand over the hospitals to the nuns.