Telkom bosses face prosecution over Sh14bn land swimsuit

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Monday October 18 2021

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Telkom CEO Mugo Kibati. FILE PHOTO | NMG

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By SAM KIPLAGAT

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Summary

  • Postel Housing Co-operative Society has been allowed to privately prosecute senior officials of Telkom Kenya in conjunction with chief executive Mugo Kibati.
  • Senior main magistrate Kennedy Cheruiyot allowed the frequent workers to bring fees in opposition to Telkom directors, just a few of whom own already left the company.

Postel Housing Co-operative Society has been allowed to privately prosecute senior officials of Telkom Kenya in conjunction with chief executive Mugo Kibati over the sale of Sh14 billion land on Ngong Boulevard in Nairobi.

Senior main magistrate Kennedy Cheruiyot allowed the frequent workers to bring fees in opposition to Telkom directors, just a few of whom own already left the company, after accusing the Director of Public Prosecutions of failing to take dangle of up the subject despite being notified of the alleged fraud.

“I salvage that this application suits the factors for a non-public prosecution as it has been demonstrated that reports were made to the DCI and DPP from October 5 remaining year initiating the grievance by the sacco participants but declined to take dangle of motion in the subject having had an opportunity to achieve so,” ruled the magistrate.

The neighborhood led by their officials Henry Belsoi had been seeking to privately prosecute frequent CEO Michael Ghossein, for board secretary Lois Allella, Mr Kibati and Dorcas Kombo (director), among others, over the sale of the land, which would maybe be being claimed by businessman Francis Mburu.

The dispute stems from a parcel of land on Ngong Boulevard, which has since been compulsorily got by the manager and is constructing a sports facility.

The neighborhood says they are extra than 300 group previously employed by the defunct Kenya Posts and Telecommunications Company (KPTC). They claimed that they paid to got 60 acres of the 79-acre parcel of land in the 1990s.

The quantities, they claimed were deducted by test-off from the payslip after agreeing to make a decision the land for Sh350,000 per acre. Mr Belsoi said Postel participants contributed nicely over Sh23 million before the contributions were halted.

They later approached a developer, named Irregular Estates Restricted to construct residential properties but the mission stalled in 1995. Later in 2009, Mr Mburu’s company claimed that Postel had assigned its pastime to Irregular Ltd.

The subject headed to court docket but the parties were referred to arbitration and in 2019, the arbitrator — Zehrabanu Janmohammed — said the three contracts entered between parties starting 1993, were enforceable.

The main contract modified into as soon as entered between KPTC and Postel for the sale of 60 acres of the land on Ngong Boulevard for Sh21 million, whereas the second contract modified into as soon as between Postel and Irregular for the housing mission. The third settlement modified into as soon as entered in January 2009, between Postel and Irregular with the frequent allegedly assigning its pastime in the property to Irregular.

Ms Janmohamed had directed Telkom to subdivide the land interior 90 days and for Irregular to pay Sh21 million for the parcel.

Nonetheless Telkom Kenya by Mr Kamau Karori challenged the choice, arguing that the award improperly conferred the land to Irregular for a paltry Sh21 million but the land is price Sh6 billion, based entirely totally on a valuation performed by an organization commissioned by Telkom.

The neighborhood alleges that Telkom sold the land to AFTRACO for Sh1.5 billion, in a deal they said modified into as soon as deceptive.

“There is minute doubt that the said motion of purporting to sell the said parcel of land to a 3rd celebration quantities to outright commission of fraud on their piece and the piece of the Telkom Kenya board,” Mr Belsoi said in an affidavit.

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