Mastermind tycoon enters out-of-court deal to avoid arrest
Mastermind Tobacco owner Wilfred Murungi (pictured) and his children are negotiating an out-of-court settlement with the environment watchdog NEMA to avoid their arrest and prosecution over a breach of building laws. Photo/FILE
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The Murungis, through their lawyer, Thursday told High Court Judge Mumbi Ngugi to give them a week to agree and return to court with consent.
The judge gave orders restraining the arrest and prosecution of Mr Murungi and his children until February 12 when the parties are expected to record the out-of-court settlement.
Mastermind Tobacco owner Wilfred Murungi and his children are negotiating an out-of-court settlement with the environment watchdog to avoid their arrest and prosecution over a breach of building laws.
The Murungis, through their lawyer, Thursday told High Court Judge Mumbi Ngugi to give them a week to agree and return to court with consent.
Mr Murungi moved to High Court in mid-January seeking to quash the warrant of arrest issued by a Kibera magistrate’s court and the criminal case triggered by a complaint from National Environment Management Authority (Nema).
Nema had accused them of building a boundary wall in Makadara, Nairobi, without seeking its approval.
“We are discussing the matter and may arrive at a settlement. In the meantime we have agreed that prayers No 2 and 3 (restraining the arrest and prosecution) be granted for a period of seven days,” advocate Tom Macharia for Murungis told the court.
The judge gave orders restraining the arrest and prosecution of Mr Murungi and his children until February 12 when the parties are expected to record the out-of-court settlement.
“In terms of the consent between the parties prayer 2 and 3 of the notice of motion dated January 17, 2014 are granted until February 12, to enable the parties discuss the matter. Mention on February 12,” ruled Lady Justice Ngugi.
The prayers granted by the judge suspend the warrant of arrest issued on September 10 against Murungi and his children and also halt their prosecution at Kibera Court which was earlier planned for February 10.
Mr Murungi, 69, was set to be charged along with his children Eric, Angela, Audrey and Allan, who is the founder and managing director of Ozzbeco — a boutique brewery that manufacturers the high-end Sierra beer.
The tycoon worked as top executive at British American Tobacco (BAT) before he quit in 1985 to take on his employer with Mastermind Tobacco, which makes the Supermatch brand of cigarettes.
The business has made Mr Murungi one of wealthiest Kenyans and he reckons in court papers that his firm employ about 1,000 workers and pays an average of Sh2 billion in taxes annually. He is also a director and second-largest individual shareholder in ARM Cement with a stake currently worth Sh548 million.
His arrest warrant comes as a number of corporate chiefs including group managing director of East Africa Breweries Limited Charles Ireland, and National Bank boss Munir Ahmed faced arrest warrants for allegedly disobeying court orders.
The Murungis claim they acquired a Nema approval in July to drill borehole at the Makadara plot.
They want the High Court to declare that environmental impact assessment reports are not a requirement when building a boundary wall, arguing that Nema Act does provide for it.
“The most distressing aspect of the charge sheet and proceeding of the day was, however, that the fact that first respondent (Nema) had charged my late mother with the aforesaid charge even though she passed away in February 2012,” says the businessman’s son Eric in court documents.
He claimed that they learnt of the charges when a Nema official and police officers seconded to the agency arrived at Mastermind Tobacco offices on December 17 armed with arrest warrant.
The Nema officials are said to have held a meeting with the tobacco firm’s security managers and demanded Sh500,000 to drop the charges, the Murungis said in court documents.
Mastermind started building the boundary wall on one of its land in Makadara in June to keep trespassers away and curb encroachment by squatters.
The tobacco firm did not mention the location of the Makadara land that had been invaded by squatters.
But there is 3.5 hectares of land in Makadara where a boundary wall was built in June following a dispute with 35,000 artisans who laid ownership.
The National Church Council of Kenya owned the land, which is adjacent to Buruburu Estate on Jogoo Road before transferring it to undisclosed private investors.
