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Mweni seeks extension of court order barring property sale

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Mr Fred Mweni has asked the High Court to extend an order stopping the Central Bank of Kenya from auctioning his family assets to recover a Sh48.3 million claim arising from his alleged involvement in trading of fraudulent Treasury bonds. FILE PHOTO | NATION MEDIA GROUP

Former head of investment advisory firm Tsavo Securities Fred Mweni has asked the High Court to extend an order stopping the Central Bank of Kenya from auctioning his family assets to recover a Sh48.3 million claim arising from his alleged involvement in trading of fraudulent Treasury bonds.

Tsavo Securities moved to court after CBK advertised the auction of three apartments he owns in a bid to settle the claim slapped on him by the regulator. He agreed to pay the sum after he accepted involvement in the trading of fraudulent Treasury bonds.

Mr Mweni has in an application said the suit he filed against CBK was not listed before any judge on December 2 last year when the orders barring CBK from auctioning his property were to expire.

CBK planned to auction Mr Mweni’s three apartments in South C and Syokimau valued at Sh120 million that the former Tsavo Securities boss had charged as security in the event that he was unable to pay the agreed upon settlement.

READ: Mweni signs deal with CBK to pay for stolen bonds

“The matter was to be mentioned on December 2, 2014. The matter was taken out of the cause list with no explanation. Mr Mweni could not extend the orders without the court file being brought to this court,” argued Mr Mweni’s advocates.

CBK planned the auction after Mr Mweni allegedly defaulted on the agreed payment plan of three equal installments. It claims that Mr Mweni paid Sh20 million in December 2012 but that he has not settled the Sh28 million balance that was to be paid in three equal installments.

Mr Mweni has however accused the bank of acting maliciously in freezing his bank accounts after he was edged out as managing director of Tsavo Securities. He holds that CBK is not after recovering the debt, but is bent on tormenting him.

“Barely one week after the agreement, CBK connived with the Capital Markets Authority to remove Mr Mweni from the Board of Directors of Tsavo Securities thus putting him in an awkward position after he had charged his properties to bail out the company he had no control in,” his lawyers added.

He further claims that it is unfair to auction property worth Sh120 million to settle a Sh23 million debt.

Tsavo Securities and Manline Telecommunications were implicated in the fraudulent treasury bonds scandal.

Mr Mweni was slapped with a 15-year ban from acting for any listed company following his involvement in the trade of fraudulent treasury bonds worth Sh105 million.

He also wants CBK to provide statements showing the current status of the debt owed, insisting that the interest rate appears to be above what was agreed on.
Justice Francis Gikonyo directed the parties to appear before him on March 17 for a mention.