Court urged to revoke order against SGR
A section of the Standard Gauge Railway crossing Makueni County on March 17, 2016. The government is seeking to have an order stopping the construction of the Sh327 billion Standard Gauge Railway on a piece of land in Mombasa revoked. PHOTO | SALATON NJAU | NATION MEDIA GROUP
What you need to know:
- The government also wants an application by African Gas and Oil Company Ltd to have the construction halted pending the hearing and determination of a petition it has filed, dismissed.
- African Gas and Oil Company Ltd was awarded Sh159 million for the land and Sh360 million for the interruption of business.
- The National Land Commission told the court that the firm obtained interim orders on June 24 without disclosing there was a dispute that was yet to be resolved.
The government is seeking to have an order stopping the construction of the Sh327 billion Standard Gauge Railway on a piece of land in Mombasa revoked.
The government also wants an application by African Gas and Oil Company Ltd to have the construction halted pending the hearing and determination of a petition it has filed, dismissed.
According to the firm, it was awarded Sh159 million for the land and Sh360 million for the interruption of business.
On Wednesday, Senior Counsel Charles Mutinda, for the Attorney-General, argued that land required for public use can be taken over even when payments have not been made.
Mr Mutinda further told Environment and Land Judge Ann Omollo that to take care of the land owner’s interests, the law allows the charging of interest on the award until payment is completed.
He added that there was no basis for granting the orders being sought by the company on the basis of compensation not made because “no one has refused to pay”.
ISSUE AN INJUNCTION
“It is not available for the court to issue an injunction against a public interest project execution because it would be counter the compulsory acquisition principle, thereby resulting in delay of infrastructure development and massive loss of public funds,” said Mr Mutinda.
The National Land Commission told the court that the firm obtained interim orders on June 24 without disclosing there was a dispute that was yet to be resolved.
Through lawyer Solomon Mbuthia, the NLC said parameters for granting the orders had not been met.
“People are waiting for the construction of the SGR, no prejudice will be suffered if the orders are not extended, they still reserve the right to claim interest,” said Mr Mbuthia.
However, the lawyer representing the company, Mr Michael Oloo, said since the awards for compensation were issued, his clients had written several letters to the government without getting any response.
He said there was no reason why the government had refused to compensate the firm. The hearing continues.
