[ad_1]
A regional lender now wants the High Court to lift an order blocking it from selling former Cabinet Secretary Raphael Tuju’s two high-end properties in Karen over a debt of Sh4.5 billion, arguing that the matter had already been concluded.
In reply to the case filed by the former CS, East African Development Bank (EADB) said Mr Tuju failed to disclose to the court that a similar application was dismissed by another judge, because the matter had already been determined conclusively.
“The dispute between the applicants and the bank arising from the facility agreement has been conclusively determined and the suit is therefore res judicata,” the lender submitted.
High Court judge Josephine Mong’are stopped the sale of Mr Tuju’s Entim Sidai Wellness Sanctuary and Tamarind Karen and Dari Business Park, which was scheduled for October 29, pending the determination of the case.
Mr Tuju has accused Knight Frank Valuers Ltd, which was appointed by EADB to value the two multi-billion properties of conducting what he termed as desktop valuations and web enquiries on the properties.
He submitted that the report does not reflect the true picture and value of the properties, hence cannot be used to conduct the forced-sale.
The valuation reports allegedly conducted in July this year placed Tamarind Karen and Dari Business Park at Sh590 million as the market value and Sh442.5 million for forced sale.
The report also placed Entim Sidai at Sh1.395 billion as the market value and Sh1.046 billion for forced sale.
The bank’s principal legal officer Ms Carol Luwanga said in an affidavit that arising from the fact that the present case and application is res judicata, the court lacks the powers to determine the case.
She said Mr Tuju and his firm Dari Ltd owes the lender an undisputed sum of $ 16,550,608.83 (as at December 20, 2019), an amount that continues to attract interest and the politician has not paid not a single cent for the past eight years.
Ms Luwanga said the Supreme Court had allowed the bank to proceed with the auction, stating that EADB was a reputable international financial institution and would be able to repay Mr Tuju, should he succeed in his case.
The lender has sought to sell the two properties to recover a debt of $35,057,622 (about Sh4.5 billion).
Garam Investments Auctioneers had said it successfully auctioned Dari Business Park for Sh450 million in an auction allegedly conducted on October 1, a claim disputed by Mr Tuju.
Mr Tuju has filed several cases to stop the sale including a case before the High Court of Justice Business and property of England and Wales in the UK.
The former Jubilee secretary general said the valuation report is based on previous valuations that were never served on him, denying him the opportunity to question or contest the same.
[ad_2]
