Land PS faces arrest for failure to pay Sh114m

Politics and policy

Mariam El Maawy, principal secretary Ministry of Land, Housing and Urban Development. PHOTO | FILE 

By BRIAN WASUNA, bwasuna@ke.nationmedia.com

Land principal secretary Mariamu El Maawy is facing arrest for failing to deposit in court Sh114 million as security for a claim made by a company that previously owned the land on which Moi Girls High School is built.

High Court judge Francis Gikonyo on Wednesday ordered Ms Maawy’s arrest after she failed to appear in court to explain why the amount had not yet been deposited.

The company, Kibucho Limited, is seeking compensation for 1.5 acres that the government acquired from it compulsorily in 1982 and used it for the construction of Moi Girls.

The Land ministry had in March agreed to deposit the sum in court within 45 days, but has not done so three months later, prompting the judge to issue the arrest warrant.

The judge held that the PS had defied his summons despite being furnished with the court documents in time.

“Ms Maawy appeared before me and made promises, which were not kept. Although an arrest warrant is a draconian measure, it seems to be the only effective mechanism this court can employ to safeguard its dignity.

“I therefore direct that the PS be brought to court with convenient speed,” Justice Gikonyo said.

The judge held that Ms Maawy’s failure to attend Wednesday’s proceedings was a direct attack on the court’s authority, and that it would set a dangerous precedent if he failed to act on it.

Kibucho Limited, a Ruiru-based firm, says it bought the land in 1982 for the development of 26 maisonettes and had already secured approvals when the government acquired it so that it could put up Moi Girls.

The firm was in 1992 put under receivership by collapsed lender Pan African Credit and Finance Limited after defaulting on a loan it had taken for the intended development of the maisonettes.

It holds that the Sh114 million owed is enough to settle its debt with the Central Bank of Kenya, which is the collapsed lender’s liquidator, and take it out of receivership.

The Commissioner of Lands had on four different occasions offered Kibucho alternative land to develop the houses, but all the parcels turned out to have been allocated to third parties.

The firm claims the Land ministry has been trying to trick its way out of compensating Kibucho for the land.

“The Commissioner of Lands has deliberately deceived Kibucho that he will compensate it for the compulsory acquisition. Despite several demands having been made, the respondents still persist in the failure to compensate Kibucho,” the firm holds.

The Land ministry’s lawyer told Justice Gikonyo in May that the ministry was willing to pay the security, but the amount had not been budgeted for in the 2014/2015 financial year.