Simba Corporation has moved to court seeking to wind up local engineering firm Nyoro Construction Company over failure to settle Sh5.7 million debts accrued from the purchase of motor vehicles.
The firm claims the construction firm associated with billionaire contractor Josiah Njuguna has failed to pay up despite various demands.
But Mr Njuguna accuses Simba Corp of using the liquidation case as a method of debt collection, arguing that the amount owed is in dispute since one of the vehicles purchased from the firm was allegedly never delivered.
Simba Corporation has moved to court seeking to wind up local engineering firm Nyoro Construction Company over failure to settle Sh5.7 million debts accrued from the purchase of motor vehicles.
The firm claims the construction firm associated with billionaire contractor Josiah Njuguna has failed to pay up despite various demands.
But Mr Njuguna accuses Simba Corp of using the liquidation case as a method of debt collection, arguing that the amount owed is in dispute since one of the vehicles purchased from the firm was allegedly never delivered.
At the heart of the row are five motor vehicles bought by Nyoro Construction in early 2017 for Sh20.9 million.
The firm paid Sh13.1 million and further issued five postdated cheques to partly settle the outstanding amount.
When presented for cashing at the bank, only one was honoured while the rest were allegedly rejected over insufficient funds.
The construction firm issued two other cheques which were honoured, leaving Sh5.7 million unsettled which Nyoro claims it is unable to pay.
“The company has in its employ hundreds of workers and any liquidation will not only affect adversely the livelihood of its shareholders, but also the employees, suppliers and other stakeholders including curtailing its public obligation to undertake the road constructions,” pleads Mr Njuguna.
He accuses Simba Corp of breaching the contract due to non-delivery one of the five vehicles. He further alleges that two of the delivered vehicles were detained after being returned for repair.
Mr Njuguna says this caused the firm losses since they were meant to help the company deliver on construction projects it was undertaking. He says the firm, which has been in operation since 1980, should be spared, arguing that it is seeking from government in excess of Sh400 million, being arbitration awards.
But Simba Corp differs arguing that Nyoro Construction has never responded to letters of demand sent to it, which it claims means the debt is undisputed.
Some current projects the firm lists on its website are the Sh637. 1 million rehabilitation of Mumbuni – Kathiani road and Sh2.1 billion construction of Murang’a-Gitugi and Njumbi-Mioro roads.
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