Tuskys case to be heard in full after family talks fail
A Tuskys outlet in Nairobi. An attempt to resolve a dispute involving the supermarket flopped yesterday and the case will be heard in full. File
Talks to amicably settle the dispute involving feuding family members over the control of the Tuskys supermarket chain have collapsed and the court case will be heard to conclusion.
Constitutional court judge Mumbi Ngugi was Thursday told that the negotiations to have the matter arbitrated away from the courts had stalled and further efforts to hammer out a deal had hit a deadlock.
Philip Murgor, a lawyer acting for one of the company director’s, Yusuf Mugweru and his niece Anne Gatei, told the judge that the relationship between the siblings was at its lowest.
Lady Justice Ngugi referred the court file to Mr Justice Mohammed Warsame for mention on Monday.
She also extended orders issued by Mr Justice Warsame stopping the police from investigating the company’s bank accounts. The judge also stopped the execution of warrants obtained by investigators from a magistrate’s court over the alleged misuse of billions of shillings belonging to the company.
Three company directors had moved to court over the alleged transfer of Sh1.6 billion and wanted the investigators allowed to examine the multi-billion supermarket chain’s financial affairs.
Mr Mugweru and Ms Gatei had made a complaint against their co-directors, accusing them of financial mismanagement of the company after which police obtained the warrants following an application by officers from the CID.
Managing director Stephen Mukuha Kamau, purchasing director George Gachwe Kamau and financial director Frank Kamau — who are accused of impropriety — moved to court seeking to quash the warrant authorising the police to search the supermarket’s head office on Mombasa Road, Nairobi. Mr Justice Warsame granted them the orders last week.
They said in court papers that their brother and a non-executive director — Mr Mugweru — had engaged himself in unlawful activities which had interfered with the management of the multi-billion business. Responding to the allegations, Mr Mugweru in a sworn replying affidavit denied the accusations.
The three directors also accused Mr Mugweru and Ms Gatei of abusing the criminal legal process by publicising the dispute in the media. The battle among the siblings started on February 20 when Mr Mugweru wrote to the Tuskys’ financial director, Frank Kamau, demanding the register and bank accounts of all firms owned by Tusker Matresses.
Mr Mugweru is said to have instructed Mr Kamau to stop all payments to several entities including Cute Interiors Ltd, Tusker Matresses-Uganda, Pop Media Ltd, Kenspore Company and Enkarasha Ltd.
In the meantime, Commercial Court judge Alfred Mabeya has vacated orders stopping the withdrawal of funds from Tuskys Supermarket’s bank accounts held in six banks.
Mr Mabeya lifted the orders after the supermarket deposited the title deed of a property worth Sh240 million to secure damages which may arise from a suit filed by a business partner Mr Juma Muchemi who claims the company breached a lease agreement.
Mr Muchemi argues in court papers that he was to put up a building in Nakuru in which Tuskys was to open a branch but upon completion in 2010, the company refused to occupy or pay rent for the premises.
He is demanding Sh165 million as compensation should the supermarket fail to take up the premise within 90 days after completion and Sh600 million in special damages.
Mr Muchemi sought the orders saying he was apprehensive that the company may be forced to close down as a result of wrangling between its directors.
The court order restrained Tusker Mattresses Ltd from withdrawing any amount from its accounts at Diamond Trust Bank, Barclays Bank, NIC Bank, Equity Bank, Kenya Commercial Bank and Consolidated Bank.
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