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Economy

More trouble for Jirongo as court orders him to pay Atwoli Sh110m

Former Lugari MP Cyrus Jirongo. FILE PHOTO | NMG
Former Lugari MP Cyrus Jirongo. FILE PHOTO | NMG 

Former Lugari MP Cyrus Jirongo has run into more trouble after the High Court found that he is personally liable to pay Sh110 million to Central Organisation of Trade Unions Secretary-General Francis Atwoli.

A different court Tuesday declared Mr Jirongo bankrupt after it found that the politician was unable to pay a Sh700million he owed eight companies.

Thursday, ruled that the Cotu boss has the right to enforce repayment against the Sh100 million friendly loan he advanced Mr Jirongo, plus Sh10 million interest.

Mr Jirongo had in court papers admitted receiving Sh100 million friendly loan last August from Mr Atwoli that was payable in 50 days, with additional Sh10 million interest.

The Nyayo-era influential politician, however, stated that the agreement had provided that the money would be recovered from the debt Nairobi county government owes his company, Kuza Farms and Allied Ltd.

He wanted Mr Atwoli to wait until his company is paid before demanding the money.

The judge in his ruling, dismissed this line of argument saying that, “in the face of the unequivocal acceptance of August 10, 2016 by Mr Jirongo, to be personally liable for the advanced sums, he cannot shift liability to Kuza.”

“Mr Jirongo’s indebtness was plain and obvious in the acknowledgment and undertaking of August 10, 2016. It was even more obvious and unequivocal when Mr Jirongo gave further undertaking of October 21, 2016,” said Justice Tuiyot.

“This court holds and finds that Mr Jirongo has admitted owing Sh110 million to Mr Atwoli and there can be no defence to that claim,” the judge added.

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