Nairobi-based investment bank Genghis Capital is in trouble after a South African businessman instructed auctioneers to seize its office equipment for sale over a debt of $2.74 million (about Sh354.55 million).
Moran Auctioneers has already put up for sale office furniture, television sets, laptops, cabinets and printers in a bid to recover the debt owed to South African businessman Auswell Mashaba.
The stock brokerage firm rushed to court on Monday to forestall the sale.
“These are to command you to sell by auction, after giving 15 days’ previous notice, by affixing the same in this court-house and after making due proclamation, the judgment-debtor’s property attached under a warrant from this court, dated January 13, 2025, in the execution of the decree-holder,” reads part of the order issued by the deputy registrar of the High Court on January 14 to the businessman.
The auctioneer had identified 16 desktops to be auctioned at Sh200,000 each, 13 metal cabinets, 17 wooden cabinets, a five-seater leather sofa, two TV sets, a small fridge and two printers.
Also attached are 23 laptops, office desks, reception counter, reception seats, office chairs and office desks, among other items.
Evidence presented in court showed that the South African loaned the brokerage firm $2,265,000 (Sh293.08 million) on January 25, 2017.
The amount was allegedly to be repaid with interest at a rate of 7.25 percent.
The South African later sought a judgment of $3,100,000 (Sh401.13 million) with interest at 7.25 percent until payment in full.
Mr Mushaba, through lawyer Otieno Ogunde, said former Genghis Capital Managing Director Geoffrey Gangla admitted on February 18, 2020, that the firm was in default of repayment.
The parties entered a consent on October 18, 2021, that Genghis would pay $2,950,000 (Sh381.75 million) with interest at 7.25 percent from October 15, 2020, plus costs of litigation, which were to be agreed upon by the parties, failure to which it would be taxed.
Under the deal, $1 million (Sh129.40 million) was to be paid on or before December 30, 2021, and subsequent instalment payable on February 26, 2022, April 22, 2022, June 26, 2022, and August 25, 2022.
The entire amount was to be paid on or before June 25, 2023.
“That in default of any of the aforesaid payments on the due date, the entire decretal sum will become one and payable and execution shall issue against the defendant, even before taxation of costs, if that will be applicable,” the agreement stated.
The auctioneer revealed in court documents that Genghis Capital had only paid $1,115,565 (Sh114.35 million).
