Barclays fights DCI over Itare dams cars seizure

Ongoing construction at Itare Dam site in Kuresoi South, Nakuru County on July 26, 2018. PHOTO | AYUB MUIYURO | NMG 

By PATRICK ALUSHULA
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Summary

• Barclays reckons that the 98 cars and equipment bought through its loans are jointly owned by CMC di Ravenna, the bankrupt Italian firm, and that the State has no claim on the luxury vehicles.
• The DCI argues that the vehicles were purchased using public money and it should therefore be enjoined in the case.
• Detectives have so far traced and impounded 37 of the vehicles, which are currently at the DCI headquarters on Kiambu Road and launched a search for more, drawing protests from the bank.

Barclays Bank of Kenya (BBK) is locked in a row with the Directorate of Criminal Investigations (DCI) over the seizure of cars linked to the construction of Itare dams.

The lender through court papers has opposed the DCI’s bid to be enjoined in the suit where BBK seeks to freeze cars and equipment belonging to CMC di Ravenna — the Italian firm contracted to build the dams — for defaulting on Sh595 million loan.

Barclays reckons that the 98 cars and equipment bought through its loans are jointly owned by CMC di Ravenna, the bankrupt Italian firm, and that the State has no claim on the luxury vehicles. But the DCI argues that the vehicles were purchased using public money and it should therefore be enjoined in the case.

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Protests

Detectives have so far traced and impounded 37 of the vehicles, which are currently at the DCI headquarters on Kiambu Road and launched a search for more, drawing protests from the bank.

“The 17 motor vehicles listed in paragraph 20 of the supporting affidavit of inspector Gilbert Kitalia were not purchased by the defendant (CMC) from funds that emanated from government. As such, there can be no basis for admitting the proposed interested parties into these proceedings,” says George Maracha, head of forensics and security at Barclays in court papers.

Court order

Barclays is opposed to DCI’s seizure of the cars, arguing that the detectives are in defiance of a court order directing the cars to be stored in a Nakuru yard.

Barclays says the cars were meant for construction of Itare dam and not the scandal hit-Arror and Kimwarer dams. The bank says it should be allowed to confiscate the vehicles without DCI interference because CMC di Ravenna has defaulted on the Sh595 million loans. CMC di Ravenna has since filed for insolvency in Italy, and Barclays fears it might transfer the cars. “The plaintiff is entitled to attach all the motor vehicles charged to it so as to recover the monies to the defendant. That is a valid exercise of its rights which cannot be interfered with by the State,” says Barclays.

While about 75 percent of the budget for the construction of the dams has been released, there is little on the ground to show for the expenditure.