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Economy

Bankruptcy orders against Jirongo lifted

Presidential hopeful Cyrus Jirongo. FILE PHOTO | NMG
Presidential hopeful Cyrus Jirongo. FILE PHOTO | NMG 

Presidential hopeful Cyrus Jirongo has been granted reprieve after the court temporarily lifted bankruptcy orders issued against him for failing to pay a Sh700 million debt.

The former Lugari MP can now contest the repeat presidential elections scheduled for Thursday this week, which he had feared could not be possible with the bankruptcy order over his head.

High Court Judge Olga Sewe yesterday allowed the request to enable the politician argue his application where he is challenging the legality of the order. The judge also directed the parties to file their court papers within 14 days.

Mr Jirongo through his lawyer had argued that he would be highly prejudiced because the bankruptcy order would have barred him from contesting the repeat presidential elections.

“Should our application succeed later and yet the decision was not suspended, Mr Jirongo’s right to contest the election will have been greatly violated to an extent which cannot be redeemed because the electoral process would have passed,” Mr Jirongo’s lawyer had told the court.

Besides not contesting the election, the bankruptcy meant that any property belonging to Mr Jirongo can repossessed by the credit manager for liquidation to settle the outstanding debts.

The decision also restricts Mr Jirongo to only handle cash he needs for subsistence, accommodation and transport.

Mr Jirongo’s application was however opposed by businessman Sammy Boit Arap Kogo, who had obtained the order against him. The High Court had earlier this month declared Mr Jirongo bankrupt.

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