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Absa recovers 14 vehicles seized in Itare dam project

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Absa bank along Muindi Mbingu Street in Nairobi on April 9, 2020. PHOTO | EVANS HABIL | NMG

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Summary

  • Absa Bank Kenya has recovered 14 vehicles that had been seized from collapsed Italian firm CMC Di Ravenna which was to construct the controversial Itare Dam in Nakuru.
  • Absa had financed the Italian firm to the tune of Sh585 million for the purchase of the vehicles and the agreement gave it rights over the equipment used in the project.
  • The Director of Criminal Investigations is still holding 17 other vehicles as the police focus on criminal investigations against the Italian firm.

Absa Bank Kenya #ticker:ABSA has recovered 14 vehicles that had been seized from collapsed Italian firm CMC Di Ravenna which was to construct the controversial Itare Dam in Nakuru.

The lender took the vehicles from a subcontractor Benisa Limited which had earlier seized them from its client CMC.

Absa had financed the Italian firm to the tune of Sh585 million for the purchase of the vehicles and the agreement gave it rights over the equipment used in the project.

Justice David Majanja ordered Benisa to release the vehicles to Absa immediately. The construction company had attached the vehicles –claiming Sh30 million after it was terminated by CMC— and advertised them for sale in February.

“The attachment is hereby lifted and the vehicles be released forthwith,” the judge said.

The vehicles include lorries, Isuzu double cabs, jeeps, graders, and Mercedes Benz. Last October, Absa auctioned another batch of over 40 vehicles as part of recovering the debt.

The Director of Criminal Investigations is still holding 17 other vehicles as the police focus on criminal investigations against the Italian firm. The DCI says the vehicles were acquired using public funds.

The Italian firm was contracted by Rift Valley Water Services Board (RVWSB) to construct the Irate dam in Kuresoi-Molo, in Nakuru County for Sh36 billion.

CMC halted the construction of the dam in November 2018 and left the site after closing its offices in the country before handing over the project back to the RVWSB.

Absa says it financed the purchase of 98 motor vehicles, through an agreement signed with CMC on May 23, 2017.

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