Contempt suits stalk chief executives in 2013

 

Several chief executives were entangled in the fights that left them facing jail terms or hefty fines. FILE 

By GALGALLO FAYO

As companies battled in courtrooms to settle trade disputes in 2013, some of their chief executives were entangled in the fights that left them facing jail terms or hefty fines.

Safaricom CEO Bob Collymore, group managing director of East Africa Breweries Limited (EABL) Charles Ireland, and National Bank boss Munir Ahmed were accused of disobeying court orders.

This saw the CEOs of the blue-chip firms listed at the Nairobi bourse face contempt of court charges, forcing their legal teams to fight off the embarrassing suits.

But the Kenya Meat Commission boss was not lucky when he served two days at the Industrial Area GK prison in Nairobi in October for breach of court orders.

James Tendwa, acting managing commissioner of the meat firm, had been committed to a jail term of three months or a fine of Sh2 million, but the firm’s attempt to appeal the fines delayed prompting the brief stay at the prison.

These cases illustrated an aggressive Judiciary following reforms in the institution under the new legal dispensation, which saw several judges sacked and the Judiciary’s independence strengthened.

Bob Collymore, CEO SAFARICOM

Safaricom chief executive Bob Collymore faced contempt of court charges in a copyright row with a musician.

Musician John Boniface Maina, popularly known as JB Maina, wanted the court to take action on Mr Collymore and three other executives for allegedly disobeying court orders issued in May.

The High Court in May restrained Safaricom from storing and selling Mr Maina’s Kikuyu songs and directed the mobile company to grant the musician access to its head office for him to make copies of purchases and sales records of his songs.

But Mr Maina argued that Safaricom did not comply with the court orders, prompting the contempt of court suit.

The musician sued the telco for allegedly using 10 of his songs as ringtones through its “Skiza” and “Surf 2 Win’’ promotion.

Mr Maina was demanding Sh5 million in damages in addition to any money dues after accounting for the alleged illegal sale of his songs through promotions.

But the High Court early December declined to set a hearing date for a contempt suit against Mr Collymore to allow for an out-of-court settlement of the row.

The move was meant to ease pressure on Safaricom as it negotiated with Mr Maina. The court directed the parties to appear before it on January 23 to report the status of the negotiations.