CfC Stanbic entangled in S.Sudan contractor’s ownership wrangles

Corporate News

 

CFC Stanbic Bank branch along Kimathi Street in Nairobi. PHOTO | FILE 

By BRIAN WASUNA

CfC Stanbic Bank is entangled in a fight between owners of a Khartoum-based contractor over a $28 million (Sh2.8 billion) claim the company won against the South Sudan government.

Bol Arech Akot-a director of Active Partners Group (APG) — wants CfC stopped from sending the massive sum to an Abu Dhabi bank account, claiming the transaction is an attempt to defraud his firm of the funds.

The account at CfC Stanbic’s Chiromo branch in Nairobi is held by the Republic of South Sudan. APG attached the funds in the account after being awarded Sh3.8 billion compensation for a botched electrification project it was to carry out in Africa’s youngest nation.

CfC had already deposited $18 million (Sh1.8 billion) in the Abu Dhabi account, but Mr Akot wants the transaction reversed. He wants the entire Sh2.8 billion deposited in either lawyers’ accounts or with the court pending the determination of his application.

Mr Akot who has a 40 per cent shareholding at APG fears that the transfer of the Sh2.8 billion to Abu Dhabi may be an attempt by his fellow shareholders to deny him the funds.

He insists he was not consulted before APG listed the Abu Dhabi account as the preferred destination for the funds.

“I have attempted to contact the company shareholders by letter, phone and common friends but to no avail. I placed an advertisement in the Citizen, a South Sudanese newspaper seeking information as to their whereabouts. However no information was forthcoming. The diversion of the monies to Abu Dhabi is to keep the funds out of the court’s jurisdiction,” Mr Akot says.

Justice Charles Kariuki has issued an order compelling CfC to preserve the $10 million (Sh1 billion) left in South Sudan’s account until he has heard the matter. The case will be heard on March 11.

The electrification project collapsed following outbreak of drought and war in South Sudan.

Arbitrators Philippe Pinsole, Karel Daele and Richard Omwela in January last year ruled that South Sudan had unlawfully cancelled the $197 million (Sh18.7 billion) tender awarded to APG for the electrification project.

South Sudan last July signed a deal with APG in which it committed to clear the compensation claim in eight instalments of $3.9 million (Sh403 million).

But APG in December obtained a court order attaching the Juba government’s assets after the State defaulted on the payments after paying just one instalment.

Mr Akot alleges that the firm claiming the CfC funds in court is not affiliated to the APG despite having a similar name.

“The decree holder is not associated with APG Active Partners Group Limited and the diversion of the monies into their account is theft,” Mr Akot adds