29 June 2012

Kenya: Railways Opposes Chinese Contractor's Bid

The Kenya Railways Corporation is opposed to an application by a Chinese developer seeking to include information that was inadvertently omitted in a Sh26 billion breach of contract suit. KRC through lawyer Cecil Miller has urged the court to disregard the application saying it is in bad faith and has no basis in law. "He has come to court under the wrong provision and court should not exercise its discretion in favour of the applicant," said Miller.

In the application the Chinese company through lawyer Gichuki King'ara, wants the court to allow it include the land reference numbers of the properties that should be preserved, even if the case will be referred to an arbiter. The director of the company-Ze Yun Yang- further says the amendment will give a full and candid picture of the matters that gave rise to the suit. "We only intend to bring a complete list of all the properties that did not include the LR Numbers when orders were first issued by court," he said

He added that they also seek to bring an alternative prayer in the event court refers matter to arbitration an order be granted to restrain the sale of properties. But in a swift rejoinder, the retirement benefit scheme also a party to the suit argued that the intended amendment by King'ara was not genuine on grounds that it has invoked wrong civil procedure

It further argued that the application only sought to introduce contradictions in the intended amendment. In the case, Ederman properties which won a tender to convert the current Railways Golf club into a five star hotel sued KRC seeking Sh26 billion as compensation following a breach of contract. The company then obtained orders freezing Kenya Railways assets countrywide, an order the corporation contested on the grounds that its operations would grind to a halt.

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