Equity loaned hotel linked to State House land Sh10m

Equity Bank advanced a Sh10 million loan to the real estate developer who has been accused of grabbing Mombasa State House land, court filings related to the case show.

The documents filed in court by the Ethics and Anti-Corruption Commission (EACC) indicate that the lender charged the loan to a plot measuring 0.0708 hectares, which is now the subject of an investigation following allegations that it was illegally hived off from Mombasa State House land that was reserved for building of government houses.

EACC has since obtained orders suspending any activity on the land, where the developer, their agents and servants were stopped from transferring, disposing of, wasting, charging or dealing with the land situated in Kizingo for six months.

READ: Equity Bank entangled in State House land grab probe

Brick wall

The EACC has sued Edward Mwangi Irungu, Minalove Hotel and Restaurant Limited and Equity Bank. Records show that Minalove bought the property for Sh8 million from Mr Irungu and became the registered owner on July 18, 2013. The premises and State House Mombasa are separated by a brick wall.

EACC investigator Abdulhamid Low stated that, among other documents, he obtained a certificate of lease during his investigations that disclosed the registered proprietor to be Mr Irungu as from April 27, 1998, who then executed a transfer in favour of Minalove on July 2, 2013.

The investigator also revealed that his investigations established that a charge dated July 8, 2013 which was executed by Minalove was then registered to Equity Bank.

EACC spokesman last week said that the Ministry of Lands and Housing would be one of the agencies to appear in court since it is in charge of the issuance of land. The respondents are yet to file a response to the application by EACC.