City Hall to recover Sh58 million from MP's firm

Borabu MP Ben Momanyi may be compelled to refund Nairobi City County more than Sh58 million out Sh60 million that was paid to his law firm in 2015.

This is after the High Court dismissed a case seeking to appeal a decision by Deputy Registrar EW Mburu, who awarded Momanyi & Associates Advocates Sh1.3 million instead of more than Sh800 million the legislator was demanding from City Hall.

In a ruling dated July 11, 2017, Justice George Odunga dismissed Mr Momanyi’s application seeking to have his claim for legal fees placed before a High Court judge for determination.

Momanyi (pictured), who is also a commissioner with the Parliamentary Service Commission (PSC), was contesting a decision by a deputy registrar of the High Court to slash his fee to just Sh1.3 million.

The MP’s law firm originally demanded Sh1.1 billion from the county government for appearing in court on behalf of City Hall in a case filed by then Embakasi MP, now Kiambu governor, Ferdinand Waititu.

On March 17, 2016, Momanyi billed City HallSh1,130,550,288.50 as the cost for appearing in the case on grounds that it was premised on the Sh25 billion damages that Waititu sought. The MP raised an interim fee note of Sh968 million on August 21, 2013.

But on August 28, 2014, then City Hall assistant director of legal affairs Erick Abwao, in his response to the August 2013 demand, wrote to Momanyi to say the county was willing to pay him Sh818,175,614.00 instead.

The offer was acknowledged and accepted at Momanyi & Associates on September 3, 2014, and on the same day Mr Abwao generated an internal memo to the county accountant to pay Sh60 million as part of the Sh818 million.

“Prepare payment voucher of Sh60,000,000.00 in favour of Momanyi & Associates Advocates being part payment of the legal fee,” the memo (LA/H/099/12) read. The money was paid in January 2015.

However, in March 2016, City Hall rescinded the decision to pay the Sh818 million and instead instructed external lawyers to seek a review of the fees downwards. Under the Advocates Act, advocate-client bill of costs is handled by a deputy registrar of the High Court.

On November 3, 2016, Taxing Master EW Mburu put the amount owed to Momanyi at Sh1,348,768.3, down from the Sh1.1 billion originally claimed, prompting the MP to seek leave from the High Court to appeal. This was dismissed by Justice George Odunga.

Tuesday, Nairobi Governor Mike Sonko said he had directed the legal department to institute recovery measures of the excess money paid to the legislator.

“I have directed my officers to pursue recovery of the amount paid in excess following the decision of the court,” he said, adding that the purge would widen to cover any other law firms that may have been paid in excess.

Mr Waititu had filed the case in 2012, after City Hallthreatened to evict more than 6,000 families in Shauri Moyo Blue estate in Kamukunji constituency.

The county council gave tenants 14 days to vacate, failing which their premises would be demolished.

Temporary orders

The High Court then issued temporary orders restraining the council from “evicting, removing, destroying, demolishing or doing anything prejudicial” to the residents. The case was dismissed in April 2013 by Justice David Majanja after Waititu failed to pursue it.

City Hall says external lawyers are demanding more than Sh5 billion after they were hired by the defunct Nairobi CityCouncil.

Sonko has already gone to court to stop all payments to creditors amounting to about Sh60 billion, including legal fees due to the law firms.

Last month, he unveiled the 10-member Committee on Finalisation of Pending Bills and Audit headed by former Ethics and Anti-Corruption Commission director PLO Lumumba to review and clear pending debt for goods and services rendered to previous administrations.

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