Equity Bank along Kimathi Street, Nairobi on October 25 2011. An
investor has been allowed to amend his claim against Equity Bank
following allegations that the lender is withholding proceeds of sale of
his shares transferred to its chairman Peter Munga. FILE PHOTO |
NATION MEDIA GROUP
An investor has been allowed to amend his claim against Equity
Bank following allegations that the lender is withholding proceeds from
................................
the sale of his shares transferred to its chairman Peter Munga.
the sale of his shares transferred to its chairman Peter Munga.
Mr
Joseph Kamau sued the bank, its securities and custody service arm -
Equity Nominees Limited - and the group chairman over the transfer of
his three million shares.
He said the balance of the
proceeds has never been paid to him despite confirmation by the seller
Dyer and Blair that they were transferred to the bank’s chairman.
The
bank also lost a bid to have the suit dismissed. The alleged irregular
transfer of Mr Muturi’s TransCentury shares worth Sh150 million was done
following his inability to repay a Sh40 million loan.
NO GUARANTEE
Justice
Fred Ochieng’ on Thursday also ruled that he could not drop Equity from
the suit, saying there was still no guarantee that it was not involved
in the alleged fraudulent transfer.
Mr Muturi in 2011
agreed to sell his stake to Mr Munga at Sh50 each to help him settle a
Sh40 million loan he had taken from Equity Bank. The bank was to deduct
the balance of Sh33 million, and pay the rest to Bethany Vineyards - Mr
Muturi’s company.
The businessman now wants a refund of the entire amount of Sh150 million plus an interest of 18 per cent from 2011.
Equity
wanted to be removed from the proceedings, saying that its role was
compromised when its chairman paid the balance of the loan, which stood
at Sh33 million.
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