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
A judge on Monday allowed a request by family members battling over the control of Tuskys supermarket chain to be heard behind closed doors.
They pleaded with Mr Justice Mohammed Warsame to hold the session in camera and journalists were asked to leave the courtroom.
The entire members of the family embroiled in the multi-billion business dispute attended Monday’s proceedings.
When they appeared before Lady Justice Mumbi Ngugi last week, they told the judge that talks to settle the matter out of court had collapsed and wanted the case to be heard to conclusion.
After extending the orders stopping the police from investigating the company’s bank accounts, Lady Justice Ngugi, sent the court file back to Mr Warsame for further directions.
She also stopped the execution of warrants obtained by investigators over the alleged misuse of billions of shillings belonging to the company.
Rival directors moved to court over the alleged transfer of Sh1.6 billion and wanted the investigators allowed to examine the supermarket’s financial records.
Court documents indicate that a director Mr Yusuf Mugweru and his niece Ms Ann Gatei made a complaint against their co-directors, accusing them of mismanaging the company after which police obtained the warrants following an application by officers from the CID.
Managing director Stephen Mukuha Kamau, purchasing director George Gachwe Kamau and financial director Frank Kamau — who are accused of impropriety — quashed the warrant authorising the police to search the supermarket’s head office on Mombasa Road, Nairobi. The orders were granted Mr Warsame two weeks ago.
The three directors have accused Mr Mugweru and Ms Gatei of abusing the criminal legal process by publicising the dispute in the media.
Stop payments
The battle among the siblings started on February 20 when Mr Mugweru wrote to the Tuskys’ financial director, Frank Kamau, demanding the register and bank accounts of all firms owned by Tusker Mattresses.
Mr Mugweru is said to have instructed Mr Kamau to stop all payments to several entities including Cute Interiors Ltd, Tusker Mattresses-Uganda, Pop Media Ltd, Kenspore Company and Enkarasha Ltd.
Separately, Mr Justice Alfred Mabeya has lifted the orders stopping the withdrawal of funds from Tuskys bank accounts held in six banks after the supermarket deposited the title deed of a property worth Sh240 million to secure damages which may arise from a suit filed by a business partner Mr Juma Muchemi.
Mr Muchemi argues in court papers that he was to put up a building in Nakuru in which Tuskys was to open a branch but upon completion in 2010, the company refused to occupy or pay rent for the premises.
He is demanding Sh165 million as compensation should the supermarket fail to take up the premise within 90 days after completion and Sh600 million in special damages.
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