Battle for Sh30bn real estate project takes a new shape
Some of the houses under the Fourways Junction project off Kiambu Road in Nairobi. The project has been halted by a court after a case was filed by Ms Nancy Wanja Gatabaki, wife of Dr Samuel Gatabaki. Fredrick Onyango
One of the directors fighting for the control of Sh30 billion real estate project, Nancy Wanja Gatabaki, executed legal documents to transfer 100 acres to Muga Developers and fully participated in a resolution to borrow Sh2.1 billion from two banks.
The revelations are contained in court documents filed by two other directors, Peter Kiarie Muraya and his wife, Sue, in response to the case filed by Mrs Gatabaki alleging fraud in the acquisition of the property.
But in a dramatic turn of events, the couple is now accusing their rival partner of obtaining orders restraining them from dealing with the property and bank accounts at Equity and I&M banks through concealment of relevant materials to the court.
“Had she been truthful, probably the court would have ruled otherwise,” says Cecil Miller, the advocate acting for the Murayas and associate companies-Muga Developers, Suraya Property Group, Suraya Investments Fourways, Suraya Sales and Frangie Investment. On August 17, Mr Miller successfully persuaded Lady Justice Jeanne Gacheche to suspend interim orders earlier obtained by Mrs Gatabaki and consequently allowed them to hold the keys to the 258 housing apartments pending the hearing on Thursday.
They have denied allegations that the transfer of the property to Muga Developers was fraudulent, saying Mrs Gatabaki executed the conveyance instrument and deed of rectification for the 100 acres to the housing developers.
The Murayas further submitted that Mrs Gatabaki was fully aware of the loans and mortgages from Equity and I&M banks as confirmed by her affidavits that she participated in the resolution to borrow the money by executing the letters of offer and acceptance for the banking facilities.
Mrs Gatabaki, through her advocate Ashford Muriuki Mugukwu, claims that Mr Muraya and his wife fraudulently transferred 200 acres to Muga Developers and used the property as collateral for two loans worth Sh2.1 billion from the two banking institutions.
It has emerged that from Sh1.5 billion borrowed by Muga Developers from Equity Bank for the project, Sh1 billion has since been disbursed to the company and 258 house owners have already paid Sh1.1 billion upfront, leaving a balance of Sh984,052,628.
During the hearing on Thursday, Suraya Property Group will seek orders to compel Mrs Gatabaki to give an undertaking by depositing Sh200 million for damages should the court find the interim orders she had earlier obtained were improperly granted.
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