Contractors at work on Phase 2A of the SGR in Suswa, Narok County. PHOTO | FILE | NATION
The High Court has ordered that Clarence Matheny Leadership and
Training Institute (CMLTI), an American-owned church group, be paid
Sh710 million for its Ongata Rongai property.
The institution had accused National Land Commission staff of soliciting bribes to secure compensation for the land.
The
prime land was acquired to put up part of the standard gauge railway
phase 2A infrastructure (Nairobi-Naivasha) but a three-pronged fight
erupted between the church group, which owned the property, the Ethics
and Anti-Corruption Commission (EACC) and suspected fake gold merchant
Zaheer Jhanda.
EACC wanted to stop
payment of Sh927 million to CMLTI, arguing that the value of the land
had been inflated and that some NLC and Kenya Railways officials were
set to benefit from bribes in releasing the money.
The second fight saw Mr Jhanda’s Altana Corporation claim consultancy fees of Sh139 million from CMLTI.
After
CMLTI sorted out its issues with the EACC out of court, Justice Enock
Chacha Mwita has now ordered that Sh710 million be released to the
church group.
The NLC had deposited Sh927 million – the originally agreed compensation package – in court in February last year.
Justice Mwita further ordered that Sh77 million be released to the National Treasury.
The
fate of the Sh139 million balance will be known after the case between
Mr Jhanda’s Altana Corporation and CMLTI is determined.
The
EACC has been looking into claims that former NLC chairman Muhammad
Swazuri tried to extort up to Sh200 million from CMLTI to secure
compensation for the land, where part of the standard gauge railway line
sits.
Mr Jhanda’s Altana Corporation
last year sued CMLTI in Nairobi, claiming Sh139 million in consultancy
fees, arguing that it helped the church group secure compensation.
CMLTI
had secured a Sh927 million compensation package. Justice Mwita then
ordered that the Sh927 million be deposited in court until the case is
determined.
Separately, the EACC went
to the Kajiado High Court, arguing that the value of the land had been
inflated and wanted payments stopped.
But
late last year, EACC and CMLTI struck an out-of-court deal that was to
see the church group pocket a reduced figure of Sh850 million for its
land. This almost wholly settled the Kajiado case, with the only pending
issue being who pays the legal bills for the suit.
Following
the Kajiado outcome, CMLTI successfully applied to have Justice Mwita
release Sh710 million to it and give the taxpayer a Sh77 million refund.
Mr Jhanda had opposed the application, arguing that his firm would lose if the money is released to CMLTI.
But
Justice Mwita held that the money sought to be released is not the
subject of any dispute after CMLTI and the EACC had settled the
grievances they had.
Justice Mwita
added that the out-of-court deal was accepted by another High Court
judge, and he has no constitutional authority to revoke a decision made
by his peer.
Mr Jhanda’s Altana, the
judge argued, should have asked either the same Kajiado court that
accepted the out-of-court settlement, or the Court of Appeal, to stop
execution of the deal.
Mr Jhanda has vowed to appeal against the EACC-CMLTI out-of-court settlement recorded in Kajiado.
The
EACC last year started investigations into Dr Swazuri, NLC deputy
director of valuation and taxation Joash Oindo and his boss Salome
Munubi over the Ongata Rongai land saga.
Anti-graft
detectives also held that NLC illegally agreed to pay CMLTI Sh98
million as professional fees, relocation and alternative accommodation
fees, which is not provided for in Kenya’s laws on compulsory
acquisition of land.
A number of
Kenya Railways staff were also on the anti-graft watchdog’s radar at the
time, and detectives believe that they tried to use Mr Jhanda’s Altana
to receive their cut.
Should the EACC arraign Dr Swazuri over the Ongata Rongai land, it will be the third set of charges against the former NLC boss.
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