Politics and policy
Moi’s son asks court to declare him bankrupt
Posted Thursday, May 31 2012 at 21:25
Nairobi’s Milimani Commercial Courts was Thursday treated to a rare drama when a son of retired president Daniel arap Moi lodged a voluntary bankruptcy suit saying he is broke and can no longer pay his debts.
Philip Moi, who is embroiled in a matrimonial suit with Rossana Pluda, now says that he wants the court to declare him bankrupt, a plea which, if granted, would shield him from paying his wife large sums of money for upkeep.
Bankruptcy is the legal status of an insolvent person or organisation that cannot repay the debts they owe creditors.
In most cases, bankruptcy is imposed by a court order, often initiated by the creditor. One can also petition the court to be declared bankrupt.
On Thursday, the court granted Mr Moi’s plea and issued orders against the sale of his assets. Mr Justice Joseph Mutava also directed that an official receiver be appointed to manage Mr Moi’s estate.
Mr Justice Mutava said he was satisfied with the petition lodged on Mr Moi’s behalf by the State Law Office and directed that a receiving order be issued against his property.
Jared Sala, a litigation counsel in the Attorney General Chambers, told the court that Mr Moi had filed the bankruptcy petition and a statement of his affairs.
“I am satisfied that Philip has completed and submitted to the official receiver (Government) the prescribed statement of affairs. And having paid the mandatory Sh20,000 deposit towards the official receiver’s expenses, I direct that a receiving order be issued against his property,” ruled Mr Justice Mutava.
Top in Mr Moi’s list of debts is the Sh7.5 million that the court ordered him to pay his wife, a Sh5 million debt he owes businessman A.B. Patel and outstanding legal fees amounting to Sh800,000.
Asked why Mr Moi was unable to pay his debt, Mr Sala replied that the applicant had no properties of his own and that the house he occupies in Nairobi’s Muthaiga North belongs to his extended family.
Mr Moi had earlier told the court that he has tried his hand in farming “but things never worked out.”
Upon receipt of the court orders, the official receiver is expected to conduct an independent investigation on the state of Mr Moi’s financial affairs and recommend to court whether he should be declared bankrupt.
In the event that he owns properties, they will be sold to pay the accumulated debts. Mr Moi has been embroiled in a court battle with Ms Pluda who moved to court seeking payment for her maintenance.
She wants the court to order him to pay her Sh7.5 million for upkeep.
On February 16, Mr Justice GBM Kariuki committed Mr Moi to jail unless he pays Ms Pluda for maintenance.