Mombasa tycoon Tahir Sheikh Said popularly known as TSS. PHOTO | FILE
By PHILIP MUYANGA
In Summary
- Tahir Sheikh Said obtained the orders that stop Bank of Africa from accessing assets from his other firms related to the one that borrowed the loan.
- The assets involved in the suit are five parcels of land in Mombasa registered in the names of TSS Transporters Ltd and TSS Investments Ltd.
- The Mombasa businessman is said to have Sh8 billion in total non-performing loans with a number of banks.
Mombasa tycoon Tahir Sheikh Said has obtained
temporary orders stopping Bank of Africa from taking over his assets
over a Sh1 billion loan and blamed his financial woes on his sons and
brother-in-law.
Mr Said, popularly known as TSS, obtained the orders that
stop the bank from accessing assets from his other firms related to the
one that borrowed the loan.
The bank wants to access assets owned by TSS
Transporters Ltd and TSS Investments Ltd while the loan was borrowed by
related firm known as Juja Coffee Exporters Ltd.
The assets involved in the suit are five parcels of
land in Mombasa registered in the names of TSS Transporters Ltd and TSS
Investments Ltd.
KCB has already taken over a milling company owned by the tycoon known as TSS Unga Millers over a loan in excess of Sh1 billion.
The businessman is said to have Sh8 billion in
total non-performing loans with a number of banks including NIC Bank and
National Bank booked under other subsidiaries in his business empire,
underlining his deep financial woes.
Lady Justice Njoki Mwangi on Thursday issued the
order stopping Bank of Africa from seizing the assets on condition that
the businessman and the two companies shall deposit $2.5 million (Sh253
million) as security in an interest bearing accounts in the joint names
of the lawyers acting for the bank and the applicants.
The orders were issued pending hearing and
determination of a case filed by Juja Coffee Exporters Ltd, TSS
Transporters Ltd, TSS Investment Ltd and the businessman against the
bank and Kaab Investments Ltd.
The tycoon is seeking orders for a declaration that
Juja Coffee Exporters Ltd is not indebted to Bank of Africa and the
lender should pursue his brother-in-law’s firm, Kaaba investments.
Mr Said reckons due to his medical condition, he
entrusted the running of Juja Coffee Exporters Ltd to his three children
and his brother in law Mr Aweys Mohamed Ahmed who is the owner of Kaab
Investments Ltd.
“I had entrusted my children and brother-in-law
with the running of the company and had faith that they would conduct
the operations in the best interest and not compromise the interest of
either the company or any other company entrusted to them,” said Mr
Said.
Mr Said stated that last year he began receiving
notices from financial institutions and was shocked to learn that from
the year 2010 the companies have gone through a massive borrowing spree
for purposes which he had no knowledge of.
Among the notices, the businessman said, included a
letter dated June 15 last year demanding payment for outstanding amount
of $ 4,897,094.71 and on August 4 a second letter from the bank
demanding an outstanding amount of 4.9 million dollars within seven
days.
“From the documentation it became apparent that in
many instances, the borrowing has been for the sole and unjust benefit
of Kaab Investments Ltd and several other third parties known to him,”
said Mr Said.
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