Equity Bank bid to exit Munga share sale case opposed

A businessman who sued Equity Bank and its chairman Peter Munga over alleged irregular sale of his shares worth Sh150 million has opposed an application by the bank seeking to be dropped from the suit.

Joseph Muturi Kamau wants Equity to stay enjoined in the suit in which he has accused the bank’s chairman of forcibly taking possession of his three million shares of NSE-listed investment company TransCentury, estimated to be worth Sh150 million.

The bank and its securities and custody service, Equity Nominees Limited, had asked the court to strike them out of the suit arguing that the fight was between Mr Munga and Mr Kamau.

The two hold that their roles in the share transfer ended after Mr Munga bought the three million TransCentury shares and paid the Sh33 million loan taken out by Mr Kamau.

Equity Nominees Limited added that Mr Kamau had not asked for any remedy to be taken against it in his suit, which allegedly rendered its presence in the suit moot.

Mr Kamau has in response asked the court to retain the bank in the suit, arguing that it still has to tell the court whether it received payment for the shares and whether the balance was deposited in his account.

“The dispute actually revolves around Equity Bank and Equity Nominees Limited and the money paid by Mr Munga. The matter should go for hearing to determine their liability,” said Mr Kamau in his pleadings.

Mr Kamau sold the shares in 2011 at Sh50 each to Mr Munga after failing to settle a Sh40 million loan he took from the bank. Sh33 million was to be deducted from his account and the balance transferred to Bethany Vineyards, a company he owns.

READ: Billionaire Munga in Sh150m TransCentury shares dispute

He alleges that Equity Bank settled the outstanding loan balance but did not remit the balance to him as agreed. He wants the bank compelled to pay him the Sh150 million for the shares, with interest from 2011.

Mr Kamau had earlier put in an application to amend the suit he filed in 2011, something the bank, its securities service and Mr Munga have all opposed.
Mr Munga said in his defence that the agreement to buy Mr Kamau’s shares did not give a deadline for payment.

After settling Mr Kamau’s loan, Mr Munga further paid the Bethany Vineyards owner Sh2.4 million as the first instalment for his shares.

Justice Francis Gikonyo directed the parties to appear before another judge, Fred Ochieng, to highlight their arguments and take a ruling date on both Equity’s and Mr Kamau’s applications.