The dam scandal has been having new twists with new revelations developing each and everyday.
An Italian firm at the centre of the multi-billion shillings dams’ scandal is in more trouble for failing to repay close to Sh600 million bank loan.
Justice Francis Tuiyott has granted orders stopping CMC Di Ravenna from transferring, selling or disposing its assets until a suit by Barclays Bank of Kenya seeking to recover the loan is determined.
Justice Tuiyott also ordered CMC Di Ravenna to surrender all the 98 vehicles and equipment it had already purchased for the construction of Arror and Kimwarer multi-purpose dams in Elgeyo Marakwet County for safe custody.
“The court issues an order directing the company to forthwith deliver all motor vehicles and equipment listed in the asset finance agreement with Barclays Bank to Casuarina Ltd for purposes of preservation pending determination of the dispute,” ruled Tuiyott.
The judge’s order spelt more doom for construction of the Arror and Kimwarer dams.There is already controversy surrounding construction of the two dams, with the Director of Criminal Investigations leading the hunt for individuals suspected of misappropriating Sh21 billion meant for the projects.
Barclays Bank, through Iseme, Kamau and Maema (IKM) Advocates, argued that it fears the company is about to go under before repaying Sh595,655,552 it borrowed to finance the purchase of the equipment.
Lawyer Kamau Karoli submitted that the company has already filed an insolvency case in Italy and that unless the court allows the bank to preserve the equipment, it will lose a substantial amount of money.