Tuju seeks dismissal of contempt suit in loan case

Jubilee Secretary-General Raphael Tuju Monday asked a judge to dismiss a contempt application brought against him by a regional lender in a Sh1.6 billion case, saying he wasn’t given a fair hearing.

Arguing before Justice Mary Kasango, Mr Tuju through Senior Counsel Paul Muite said he and his company Dari Ltd were denied the right to be heard before the order allowing receiver managers to access the company in Karen.

He said Mr Tuju and his co-directors cannot be punished yet they were not afforded a hearing.

But in reply, East Africa Development Bank through Senior Counsel Fred Ojiambo said there was a clear no-compliance of court orders, and the directors of Dari should be punished for the disobedience.

He said the managers were denied access to the company on several occasions.

He said on March 25, the court directed the two receiver managers — Muniu Thoithi and George Weru — to access the premises.

The directors of Dari were also required to hand to the receivers the company’s statement of affairs, financial returns and company records as well as cash book from December 29, 2019 to date. They are also required to hand in management accounts, list of debtors and creditors as at February 4, 2020 and the staff payroll for the last three months.

And in default, Mr Tuju and his three children, should show cause why they should not be committed to civil jail for six months for disobeying court orders.

Justice Kasango will rule on the application on June 11.

Mr Tuju has lost a bid to stop the receivers from moving in when a judge ruled that the managers should handle the company as a going concern, pending the determination of the case.

But he has fought the takeover bid accusing the bank of frustrating his plan of repaying the debt and to permanently deprive him of the property.

He also argued that the objective of placing Dari in receivership was to sell it and deprive him of his right to own property.