Family’s bid to resolve row over Tuskys out of court fails
A Tuskys branch in Nairobi: Family members embroiled in the multi-billion business dispute failed to agree on an out-of-court settlement. Photo/File
An attempt at an out-of-court settlement of a family feud over the control of Tuskys Supermarkets has collapsed, documents filed in court show.
Yusuf Mugweru, one of the company directors, has applied to court to set aside orders stopping the criminal proceeding against other directors of the company, saying the mediation talks had flopped.
Mr Mugweru and his niece, Ann Gatei, made a complaint against co-directors last year, accusing them of mismanaging the company after which police obtained the arrest warrants following an application by officers from the Criminal Investigations Department.
However, the order was set aside by the court. Last year, Mr Justice Mohamed Warsame directed that managing director Stephen Mukuha Kamau, purchasing director George Gachwe Kamau and financial director Frank Kamau, who are accused of impropriety, try and solve the feud through mediation.
“Efforts made by Justice Mohamed Warsame , and the court appointed informal mediator, Mr Abdi Adan Suleiman, have failed as the considerable time provided by the court, has instead been misused by your clients,” says the document filed in court by Murgor and Murgor Advocates.
The three directors have accused Mr Mugweru and Ms Gatei of abusing the criminal legal process by publicising the dispute in the media. Subsequently, the media was locked out from some of the proceedings.
The 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-shilling supermarket chain’s financial affairs. “Our client is opposed to any further attempt by your clients to have this matter shielded from public scrutiny, through in-camera proceedings, which has so far only enabled them abuse the process of the honourable court with impunity,” reads the document filed in court.
The battle among the siblings started in February last year when Mr Mugweru wrote to Tuskys financial director demanding the register and bank accounts of all firms owned by Tusker Mattresses.
However, the directors obtained orders stopping the investigations. Mr Mugweru now wants the orders set aside and the investigations commenced since the mediation had failed. He accuses the co-directors of trying to subvert course of justice by converting the questioned companies into subsidiaries of Tusker Mattresses Limited and the money in dispute to loans.
