Jillo Kadida
4 July 2008
Nairobi — The High Court has stopped a Libyan company, the new owners of the Grand Regency hotel, from carrying out dealings on it.
In effect this means that the company remains the owner of the hotel but it cannot transfer it or dispose it off until the court hears the case.
High Court Judge Mr Justice Alnashir Visram has issued temporary orders stopping the company known as Libyan Arab African Investment from interfering with the ownership of the hotel for the next 14 days.
The Judge granted the temporary order following application by one of the hotel's receiver manager Mr Hezekiah Gichohi.
However, the judge gave the temporary reprieve on condition that Mr Gichohi files an undertaking for damages by next Monday.
An undertaking for damages means if it turns out that the company is not the new owner of the hotel then Mr Gichohi will compensate for any damages caused.
Justice Visram while giving the order said: "Having perused the suit papers and heard the submissions of the lawyer, I am satisfied this is a proper case warranting temporary stay."
The judge also allowed lawyer Kibe Mungai representing Mr Gichohi to file supplementary affidavit in court in the next ten days.
Mr Gichohi wanted the transfer of the hotel stopped because he says it owes him Sh34 million. He says the decision by the Central Bank of Kenya to secretly transfer the hotel will interfere with his right to the money.
He believes that the transfer of the hotel is illegal and should be stopped.
The hotel is at the centre of corruption allegations and so public interest compels the court to restrain Libyan Arab African Investment from interfering with it, he argues.
Given his involvement in the preservation of the hotel for the last five years, he said, he is qualified to act in the matter as a public agent.
Mr Gichohi is a certified public accountant and was appointed as one of the joint receiver managers of the hotel in June 2003 by the Kenya Anti-Corruption Commission.
The other receiver manager was Mr Peter Ndaa who was appointed by Uhuru Highway Development Ltd.
Mr Gichohi also told the court that early this year the Uhuru Highway Development and CBK clandestinely began a valuation of the hotel. Under normal circumstances, he said, such valuation ought to be done with the knowledge of the receiver managers.
In his suit papers, Mr Gichohi has listed Uhuru Highway Development Ltd, Central Bank of Kenya and Libyan Arab African Investment and the Grand Regency Hotel as defendants.
The case comes up for hearing in presence of all the parties on July 16.
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