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TSS children seek to stop Bank of Africa asset sale in legal battle

Mombasa tycoon Tahir Sheikh Said popularly known as TSS. PHOTO | FILE
The Late Twahir Sheikh Said. PHOTO | FILE 

Three children of the late Mombasa tycoon Tahir Sheikh Said, popularly known as TSS, are seeking to block the sale of their father’s multibillion shilling properties.

Garam Investment Auctioneers has advertised for public auction the properties including six parcels of land in a bid to offset defaulted loans disbursed by Bank of Africa (BoA) to the late tycoon’s business empire.

In a newspaper notice, the auctioneer had announced that the commercial properties in Mombasa central business district and Kizingo would be auctioned on November 18.

All the properties facing the auctioneer hammer were purportedly charged on different dates to secure financial facilities to Juja Coffee Exporters Ltd.

Following the notice, the tycoon’s children Osman Tahir, Amina Tahir and Said Ahmed moved to the court yesterday to stop the auction.

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In an application filed under a certificate of urgency, the three want a temporary injunction halting the sale of the property, arguing that they had obtained fresh reports detailing fraudulent dealing that led to the charging of the properties.

Through their advocate, Mark Waziri, the applicants said their investigations have revealed that the loans, which were procured from BoA were obtained through massive fraud and irregularities.

“After analysis, it is clear the bank did not honour terms of the facilities. We shall fully rely on the findings of the two reports to prove our case,” Mr Waziri said.

He told Mombasa High Court Judge Dorah Chepkwony that the properties, which the bank wants to be auctioned are a subject of several court cases, including criminal and succession matters, which are still pending determination.

But BoA has asked the court to dismiss the application and allow the auction to take place so that it could recover its money.

The lender said similar past applications by the same complainants had been rejected, hence there was nothing new they have brought before the court.

“The applicants have made or showed no efforts to repay the money owed to the bank hence they do not deserve conservatory orders they are seeking,” said the bank.

TSS died in January 2017, leaving behind loans more than Sh3.5 billion in loans advanced to his various businesses.

The court is expected to make a ruling on November 15.

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