Court bars Bank of Africa from seizing tycoon TSS’s assets

Mombasa tycoon Tahir Sheikh Said has obtained temporary orders stopping Bank of Africa from taking over his assets over a Sh1 billion loan and blamed his financial woes on his sons and brother-in-law.

Mr Said, popularly known as TSS, obtained the orders that stop the bank from accessing assets from his other firms related to the one that borrowed the loan.

The bank wants to access assets owned by TSS Transporters Ltd and TSS Investments Ltd while the loan was borrowed by related firm known as Juja Coffee Exporters Ltd.

The assets involved in the suit are five parcels of land in Mombasa registered in the names of TSS Transporters Ltd and TSS Investments Ltd.

KCB has already taken over a milling company owned by the tycoon known as TSS Unga Millers over a loan in excess of Sh1 billion.

The businessman is said to have Sh8 billion in total non-performing loans with a number of banks including NIC Bank and National Bank booked under other subsidiaries in his business empire, underlining his deep financial woes.

Lady Justice Njoki Mwangi on Thursday issued the order stopping Bank of Africa from seizing the assets on condition that the businessman and the two companies shall deposit $2.5 million (Sh253 million) as security in an interest bearing accounts in the joint names of the lawyers acting for the bank and the applicants.

The orders were issued pending hearing and determination of a case filed by Juja Coffee Exporters Ltd, TSS Transporters Ltd, TSS Investment Ltd and the businessman against the bank and Kaab Investments Ltd.

The tycoon is seeking orders for a declaration that Juja Coffee Exporters Ltd is not indebted to Bank of Africa and the lender should pursue his brother-in-law’s firm, Kaaba investments.

READ: KCB takes over Mombasa tycoon’s company in Sh1bn bad debt tussle

Mr Said reckons due to his medical condition, he entrusted the running of Juja Coffee Exporters Ltd to his three children and his brother in law Mr Aweys Mohamed Ahmed who is the owner of Kaab Investments Ltd.

“I had entrusted my children and brother-in-law with the running of the company and had faith that they would conduct the operations in the best interest and not compromise the interest of either the company or any other company entrusted to them,” said Mr Said.

Mr Said stated that last year he began receiving notices from financial institutions and was shocked to learn that from the year 2010 the companies have gone through a massive borrowing spree for purposes which he had no knowledge of.

Among the notices, the businessman said, included a letter dated June 15 last year demanding payment for outstanding amount of $ 4,897,094.71 and on August 4 a second letter from the bank demanding an outstanding amount of 4.9 million dollars within seven days.

“From the documentation it became apparent that in many instances, the borrowing has been for the sole and unjust benefit of Kaab Investments Ltd and several other third parties known to him,” said Mr Said.

The businessman further added that the borrowing and additional facilities were not restricted to Bank of Africa and were extended to several other banks.

The case will be mentioned on September 20.

Wealth in Kenya report of 2014 listed Mr Tahir as one of the largest land owners in the country.

His fortunes, however, seem to have taken a turn after the government cancelled title deeds to large tracts of land in Lamu that were associated with him.

TSS has been entangled in several court cases, most of them involving land ownership. Mr Tahir also has multi-billion shilling investments in transport and petroleum.