Court rejects plea to release Sh4b in row by KPC contractors

Kenya Pipeline Company (KPC) petroleum storage facilities in Nairobi on August 21, 2024. [Kanyiri Wahito Standard] A Lebanese company has suffered a major setback after the Court of Appeal declined to release Sh4.1 billion paid by Kenya Pipeline Company (KPC). Zhakem International Construction moved to challenge Justice Patrick Otieno's order to have the money wired to an account jointly held by Ahmednasir Abdullahi Advocates LLP and Majanja Luseno and Company not to be transmitted to the company or Eco Bank Nigeria. Court of Appeal judges Daniel Musinga, Kathurima M'inoti and Mwaniki Gachoka adjourned the appeal and froze the case before the High Court. They said the Directorate of Criminal Investigations should first submit its report on claims that Justice Otieno had been approached by Oilfields Engineering and Supplies's lawyer Tom Ojienda to allegedly seek a favourable ruling. On August 8, Justice Otieno ordered that the money should not be released, withdrawn or disbursed until the applications filed by Oilfield are determined. "This order is directed at the two counsel, Mr Ahmednasir Abdulahi and Mr Steve Luseno, advocates as court officers for compliance," the judge ordered. Earlier, Zhakem's lawyer had returned to the same court, seeking to have freeze orders lifted. The case was set for hearing on May 6, but it was adjourned. Hearing was set for May 29, but the case did not proceed as the judge had been transferred to Busia. It was then pushed to July 10. However, the Commercial Court Deputy Registrar had not listed the case in the system nor notified the lawyers about the date. Only Oilfield's lawyer showed up. When the case came up again, Ahmednasir claimed that his client had learned that the arbitrator had allegedly been bribed. He also asked the judge to withdraw from the case, arguing that a secret hearing date had been issued. Oilfield's other lawyer, Duncan Okubasu, opposed the move. Then, there was another claim about Prof Ojienda's appointment to represent Oilfields. He claimed that one Francis Amina Juma had intimated to his client that the senior lawyer had been hired to find favour before him. He asked the court to allow him to file an affidavit from Zhakem to support the allegations, but he did not. Ojienda claimed that Amina was the actual owner of Oilfields and that he had told his client about it. Ahmednasir urged the court to compel Amina to appear in court to test the truthfulness of the claims. However, Okubasu claimed that Zhakem and KPC went before High Court judge, Alfred Mabeya, and filed a consent to settle the payment to beat the court's orders to freeze the money. "They are doing this because they want to go about your pending rulings, they want to countermand them. They are looking for an easy way and that is why they recorded consent before Justice Mabeya even though he told them this does not affect other obligations.They have been actively involved in getting the subject matter that has been reserved out of this court," claimed Okubasu. "This conduct must be brought to an abrupt end," he said. Justice Otieno dismissed Ahmednasir's arguments. Nevertheless, he disclosed that he knew Ahmednasir and Ojienda in 1988 when they were at the university studying law. There was nothing special about either, he said. Otieno directed that the DCI takes statements from Amina and Ibrahim Zakheem. KPC had earlier paid Zhakem Sh3.1 billion but left a balance of Sh4 billion owing to court cases on who would be paid.

Court rejects plea to release Sh4b in row by KPC contractors

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Court rejects plea to release Sh4b in row by KPC contractors

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