KICC in court bid to stop property auction over unpaid bills

The Kenya International Convention Centre. FILE PHOTO | NMG

What you need to know:

  • KICC boss says procurement of WTO services was hampered by fraud and malpractices.
  • She therefore seeks court protection as the bills are verified.
  • Ms Gecaga says says the audit will be complete in four months.

The Kenyatta International Convention Centre (KICC) has moved to court seeking to stop multiple companies from auctioning its properties over Sh716 million pending bills.

The companies are seeking payments for services provided during the World Trade Organisation (WTO) Ministerial conference in 2015.

KICC says it faces multiple claims where some service providers have already obtained warrant of attachment to auction its properties while some have obtained favourable arbitration awards.

Fraud

KICC chief executive officer Nana Gechaga in an affidavit claims procurement of goods and services for the WTO conference was hampered by fraud and malpractices.

She therefore seeks court protection as the bills are verified.

“I am apprehesince that by attaching the corporation property or exposing its inability to meet its world trade organisation ministerial conference has the potential effect of bringing its functions to a standstill or throwing into disarray its (KICC) functioning. contrary to public interests and policy,” says Ms Gecaga.

The KICC is asking for "some interim orders of moratorium for such period as this honourable court may determine staying all payments and proceedings against the [KICC] to its creditors pending the hearing and determination of the notice of motion inter parties."

The KICC has listed the Auditor-General and the Attorney-General as interested parties.

Greenstar Systems Limited, congress Rental South Africa and Mosound Limited have also been listed as interested parties.

The three companies are seeking to attach KICC properties over outstanding bills.

28 entities

Ms Gecaga dentifies 28 entities demanding payments from KICC totalling Sh716 million, including a Sh80 million by the Kenya Revenue Authority.

She says that there were changes in the management of the KICC which called for fresh audit of the bills.

The KICC chief executive says the audit will be complete in four months.

She noted that some bills appear exaggerated and dubious on the face of it and the corporation expects to be served with warrants to attach its properties.

She further notes that some claimants have threatened to publish in local dailies KICC's inability to settle the bill, with a view of coercing it to settle the bill before it is verified.

Ms Gecaga says the corporation will suffer severe harm and business loss should its property be attached or the exposure allowed to continue.

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