Cabinet Secretary Raphael Tuju who was flown to the UK for treatment on on February 20, following a road accident on Wednesday, February 12, lost control over his firm’s accounts, Dari Limited, in a bid to stop the recovery of a Ksh1.5 billion debt he owes the East African Development Bank (EADB).
A report by The Standard on Tuesday, February 25, stated that Dari’s accounts were frozen over the loan paralysing activities at Tuju’s firm.
Renowned lawyer Paul Muite, alongside Paul Nyamodi and Bridget Ndong, who represented Dari in the case at the High Court, argued that EADB had ordered the freeze after the court heard the matter.
Jubilee Sec-Gen Raphael Tuju
“The plaintiff operates a cashless business and has money in the accounts the defendants have frozen. The end of the month has come and it will not meet its obligations to suppliers and over 100 employees. The business should not be held on ransom by receivers,” the lawyers argued in front of Justice Graze Nzioka.
EADB’s lawyer disputed the claim stating that the accounts were frozen after the defendants learnt about the case, and not after the court heard the matter.
Another argument tabled before the court stated that the firm had declined to fully disclose information.
According to Ojiambo, despite Tuju being unwell, his children were obligated to provide information as they were directors at the firm.
The case will proceed on Monday, March 2.
On February 13, Tuju lost a bid to block the auction of properties which he used to access a multi-million dollar loan for the construction of luxury apartments in Nairobi’s leafy Karen suburb.
EADB had sought to enforce a ruling by a London court that found the Cabinet Secretary to have defaulted on the loan, including principal and interest.
Justice Wilfrida Okwany upheld the judgement by the UK court, noting that the bank had satisfied all conditions for the ruling to be enforced in Kenya.
Jubilee Party Secretary-General Raphael Tuju’s car at Lari Police Station after an accident along the Nairobi-Nakuru Highway on Wednesday, February 12