Orthodox church leaders in dispute over Sh600m

Archibishop Makarios Tillyrides, Orthodox Church head in Kenya. File 

By GALGALLO FAYO

In Summary

• The defendants in July transferred Sh270 million held in the account of Orthodox Archbishopric of Kenya Limited with Standard Investment Bank to the new company’s account at Prime Bank.
• A teleconference meeting of the Orthodox Archbishopric of Kenya Limited held on May 30, and attended by the four defendants, authorised the transfer of all money into the accounts of the new company.

The top leadership of the Orthodox Church is embroiled in a bitter dispute that has seen a senior cleric accuse the archbishop in Kenya of illegally taking possession of about Sh600 million through a privately registered company.

 

The Very Reverend Father Silouanos Samuel Mwangi Gichanga claims that Archbishop Makarios Tillyrides has appropriated more than half a billion shillings from the Kenyan church.

In a suit filed at the High Court in Nairobi The Rev Gichanga, described as the church's finance chief, claims Archbishop Tillyrides could defraud the faithful of even more cash if he is not stopped.

He has also accused Pope Theodoros II Nikolas, Athinodoros Papaevripiades and Kongai David Kiplagat of being the Archbishop’s accomplices in the transfer scheme in which church money is being moved to a newly created company.

“The church accounts hold huge sums of money which belong to congregants (and) which, if appropriated, may (be) put to waste and the said defendants may not be able to refund,” he says in his pleadings to the court. He claims about Sh600 million has already been transferred to Orthodox Towers Management Limited, a company registered in the quartet’s name in April.

The Rev Gichanga wants the court to stop what he says is the mass transfer of church cash.

In the suit filed on July 2, The Rev Gichanga claims that the defendants had locked him out of the management of the Orthodox Archbishopric of Kenya Limited, which has custody of all church assets.

But the defendants have denied the accusation of misappropriating funds, arguing that the new company was formed in order to facilitate the church to invest the money. Mr Kiplagat, on behalf of the other defendants in an affidavit filed on July 16, said that the orders sought by The Rev Gichanga stopping transfer of assets and cash had been overtaken by time.

He says that the new company was formed with the sole purpose of managing the church’s assets. Mr Kiplagat claimed that a limited company was incorporated to act as an investment vehicle to manage church assets and carry out joint ventures with an independent financier. He argued that it was necessary to incorporate another company since the church is exempt from some taxes to be paid on its investment.

The four also say that the new company is fully owned by the church. Mr Kiplagat told the court that the defendants require more time to get documents from Egypt and Cyprus for a more comprehensive response.

Mr Kiplagat asked the court to dismiss the case, arguing that it seeks to paralyse church activities. But the petitioner insists that he has the right to participate in the management of the Orthodox Archbishopric of Kenya Limited, arguing that he is the director in charge of finance.

However, the defendants dismiss this claim, arguing that in 2011 the memorandum of articles of association of the church was amended to vest all powers only on the Pope or his nominee.

The archbishop and other defendants allegedly incorporated Orthodox Towers Management Company Limited without the authorisation of the board of Orthodox Archbishopric of Kenya Limited or even without seeking approval from church members.

A teleconference meeting of the Orthodox Archbishopric of Kenya Limited held on May 30, and attended by the four defendants, authorised the transfer of all money into the accounts of the new company.

Mr Theodoros is listed in the minutes as the Pope and Patriarch of Alexandria and all of Africa, Mr Tillyrides the Archbishop and Mr Kiplagat and Mr Papaevripiades are listed as members. The record shows that the four agreed that the taxes due to the Kenya Revenue Authority (KRA) amounting to Sh27 million be paid from the accounts of the newly registered company.