Britam abandons claim against Acorn in Sh5bn out-of-court settlement
Britam Group managing director Benson Wairegi. PHOTO | FILE
What you need to know:
The out-of-court settlement will see Acorn pay Sh5 billion to BAAM, funds whose transfer from the financial services firm’s accounts by four of its former employees was contested.
BAAM will also re-acquire four major development projects that Acorn had handed over to Cytonn – a rival private equity firm formed by the former Britam employees.
The firm says it will still pursue criminal charges against its former executives.
Financial services group British American Asset Managers (BAAM) has dropped a multibillion-shilling claim it filed against property development group Acorn and seven of its affiliates following an out-of-court deal that will also see it relinquish a minority stake it holds in the real estate firm.
The deal will see Acorn pay Sh5 billion to BAAM, funds whose transfer from the financial services firm’s accounts by four of its former employees was contested.
BAAM will also re-acquire four major development projects that Acorn had handed over to Cytonn – a rival private equity firm formed by the former Britam employees.
BAAM accused Edwin Dande, Elizabeth Nkukuu, Shiv Arora and Patricia Wanjama of irregularly transferring Sh5 billion from it. BAAM says it will still pursue criminal charges against its former executives.
“Following the legal settlement, Britam will recover high-value land in Nairobi, which includes five acres in Kileleshwa, 2.5 acres along Elgon Road in Upper Hill, 25 acres in Mlolongo and 182 acres in Lukenya, Machakos County.
“These projects have an estimated value of Sh40 billion. Acorn has also agreed to transfer back to Britam the mandate to operate the various bank accounts and cash balances in relation to these projects,” Britam Group managing director Benson Wairegi said Thursday.
The seven Acorn affiliates are listed as Edenvale Developments LLP, Starling Park Properties LLP, Crimson Court Development LLP, Sinopia Properties LLP, Mikado Properties LLP, Crescent LLP and Spring Green LLP.
Mr Dande and his team are accused of wiring out of Britam Sh1.16 billion in five tranches to multiple accounts held by Acorn at Chase Bank and a further Sh2.78 billion to seven entities that are subsidiaries of Acorn.
They have vigorously denied the accusations in court and in a statement issued Thursday. The Cytonn executives defended the transfer of Sh3.9 billion from BAAM’s accounts, arguing that the said financial transactions were approved by all of their former employer’s board and top management.
Mr Dande has filed in court copies of emails and meeting minutes he insists are evidence that Mr Wairegi and directors of Britam, including Mr Jimnah Mbaru and Mr Peter Munga, were aware of BAAM’s dealings with partners and clients.
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