A magistrate court in Nairobi has ordered the release of former Savannah Cement boss Benson Ndeta unconditionally.
Appearing before the senior principal magistrate at the Milimani Courts on Monday, Mr Ndeta, through his lawyer Cecil Miller, said he spent the weekend in police custody despite obtaining court orders directing his release last Friday.
Mr Miller urged the court to direct the police to comply with the directions of the High Court and postpone a ruling seeking his release on bond.
Mr Ndeta’s legal troubles come after he launched an audacious bid to acquire Bamburi Cement Plc’s issued shares amounting to 362,959,275 for Sh27.78 billion through his company Savannah Clinker Limited.
The tycoon offered the cement manufacturer’s shareholders Sh76.55 per share. The offer blew out of the waters the Sh65 per share offer totalling Sh23.59 billion that had been made by Tanzanian conglomerate Amsons Group. Amsons is yet to raise its bid to rival Savannah Clinker’s higher bid ahead of the closure of the offer period on Thursday.
“We urge the court to postpone the bail ruling and the hearing on this matter, pending the determination of the petition, at the High Court, challenging his prosecution,” Mr Miller told the court.
The magistrate directed the matter to be mentioned on January 30, 2025 for directions.
The lawyer protested the police decision to keep Mr Ndeta in custody despite the High Court directing them to release him.
The businessman denied eight counts including a conspiracy to commit a felony, obtaining execution of a security by false pretense and uttering false documents.
Mr Miller termed the allegations against Mr Ndeta as malicious and wondered why a businessman can be prosecuted for securing a loan from a lender to create employment and increase the country’s revenue.
“Mr Ndeta is a victim of business competition after (he) successfully bid for the purchase of Bamburi Cement Company,” Mr Miller submitted, adding that his client was the first person in history to be charged with a criminal offence for obtaining a commercial loan.
His co-accused, Charles Hills Jr, was not in court when the charges were read.
On the first count, Mr Ndeta and Mr Hills Jr are accused of conspiracy to commit a felony by obtaining a loan of $35 million (Sh4.5 billion) from Barclays Bank, now known as Absa Bank.
It is alleged that they committed the offence on diverse dates between February 27, 2017 and January 24, 2018, with intent defraud.
On charges of obtaining credit by false pretense, Mr Ndeta and Hills Jnr are alleged to have jointly obtained the loan purporting to be acting on behalf of Savannah Cement Limited.
Mr Ndeta further denied charges of obtaining registration by false pretense. The charge sheet stated that he committed the offence May 9, 2018, at Absa Bank headquarters in Nairobi.
It is alleged that he knowingly and fraudulently uttered forged cooperate guarantee loan security documents, dated May 9, 2018, subordination agreement dated the same day and extra minutes of Savannah Heights Limited to Christine Mwende Nzau, a corporate relationship manager, purporting them to be genuine documents issued by Savannah Cement.
