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Deep: Inside Mwilu’s Sh131m Controversial Deals with Imperial Bank.

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Embattled Deputy Chief Justice Philomena Mwilu was a regular customer of the collapsed Imperial Bank whose eye for prime parcels of land saw her take out at least Sh131 million in loans, documents filed in court have revealed.

Justice Mwilu’s loan dealings with Imperial Bank, alongside eight land titles that were charged as collateral to secure the multi-million shilling advances, are at the heart of criminal charges that the Director of Criminal Prosecutions (DPP) has levelled against Kenya’s second senior-most judge.

The judge is facing 13 counts of abuse of office, tax evasion and fraudulent recovery of loan securities.

Investigators at the Directorate of Criminal Investigations (DCI) have accused the Deputy CJ of using her position to illegally obtain Sh12 million from Imperial Bank between August and October 2013. In her defence, however, the Supreme Court judge says that Imperial Bank extended her the Sh12 million as an unsecured loan, which she has since repaid in full.

“The sum referred to in count two of the intended charge was an unsecured loan advanced to Justice Mwilu by the bank and credited to her account,” Justice Mwilu says in her petition seeking to stop the DPP’s criminal prosecution.

High Court judge Chacha Mwita has suspended the Deputy CJ’s prosecution until October 9, when he will hear the matter. Justice Mwilu has sued the DPP, Noordin Haji, DCI boss George Kinoti, the Chief Magistrate’s Court and Attorney-General Paul Kihara Kariuki.

In total the court papers show Justice Mwilu borrowed from Imperial Bank a short-term loan of Sh60 million, a Sh59.3 million long-term loan and the claimed Sh12 million unsecured loan. Remarkably, the affidavit and documents she has filed as evidence show that the Sh60 million loan was advanced to her one year before she bought the land used as collateral and before it was transferred to her.

Justice Mwilu’s affidavit and the attached documents indicate that Imperial Bank advanced her the loan on December 2, 2013. She says that she bought the land on December 18, 2014, which is a year after the same property was used to secure her borrowing.

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The Sh59.3 million loan was secured by charging five parcels of land registered as 1265, 1273, 1274, 1275 and 1276 at the Ministry of Lands. Ownership documents for the five pieces of land are still in Imperial Bank’s custody.

On December 2, 2013, while still a Court of Appeal judge, Justice Mwilu used two pieces of land in Nairobi (reference numbers 3734/202 and 3734/209) as security for a Sh60 million loan.

One month after Imperial Bank was placed under receivership, she wrote to the Kenya Deposit Insurance Corporation (KDIC), through lawyer Stanley Muluvi, seeking a substitution of the loan security.

DCI investigators and DPP Haji believe that Justice Mwilu may have induced KDIC CEO Mohamud Mohamud to illegally release the two parcels of land to her. The judge asked the KDIC to release the two pieces of land to her in place of a half-acre property registered as 3734/1129. The KDIC, however, asked her to clear the Sh60 million loan, which had attracted Sh2.8 million in interest and the unsecured borrowing. The unsecured loan balance was then Sh2 million. The Imperial Bank receiver-manager also asked her to make partial payment on the long-term loan.

Justice Mwilu’s lawyer, Mr Muluvi, notified Imperial Bank’s receiver-manager of a Sh65 million payment on January 1, 2016, which was to honour the KDIC’s demand.

In January 2016, the KDIC wrote to Mr Muluvi acknowledging the payment and asking him to furnish it with the original title deed for the land that was to be used as a substitute. Documents Justice Mwilu has filed in court do not indicate whether she deposited the title deed.

The affidavits state that she is still repaying the long-term loan whose balance currently stands at Sh43 million. “On January 1, 2016 Mr Muluvi notified the bank of Justice Mwilu’s payment of Sh65 million in the bank’s account and required the bank’s release of the original titles for properties land reference numbers 3734/202 and 3734/209 together with duly executed discharge of charge,” the judge adds in her affidavit.

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NSE daily turnover rises up 146% to hit KSh 1.1 Billion

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Nairobi Securities Exchange(NSE) recorded a turnover of KSh 1,102,657,782 after a total of 30.6 Million shares traded in 1,051 deals when trading ended at the bourse this Monday.

Uchumi Supermarkets Plc was the top gainer, its share price rising 8.7% to KSh 0.25.

It was followed by Nairobi Business Ventures(8.16%), Car and General Plc (7.32%) and Nation Media Group Plc (5.98%).

NSE worst performers

The worst performers were led by Flame Tree Group Holdings Plc, whose price fell by 7.8% to KSh 1.30.

It was followed by Liberty Holdings Plc, which declined by 6.02%, TPS Eastern Africa Plc, which lost 5.45% and TransCentury Plc, which shed 4.24% as investors reacted to its decline in half-year earnings.

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Safaricom Plc remained the top mover with a volume of 24.8 Million traded shares, followed by KPLC (2.54Million), Equity Group Holdings Plc (1.22Million) and KCB Group Plc (961,400).

The benchmark All Share Index declined1.32 points to close at 164.44. The NSE 20 Share Index declined 4.17 points to close at 1859.08, while the NSE 25 Share Index declined 24.24 points to close at 3562.38

The Derivatives Market had 53 single stock futures contracts valued at KSh 1.60 Million concluded, compared to the 34 SSF contracts valued at KSh 1.23 Million concluded during the previous session.

The Secondary Bond Market moved bonds worth KSh 6.55 Billion transacted in 120 deals compared to KSh 2.22 Billion worth of bonds achieved in 97 deals in the prior session.

ALSO READ: Safaricom Volumes Drop at NSE as Investors react to the firm’s Declined Earnings

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Kenyans lose cash as Amazon Web Worker is deleted from site

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A section of Kenyans who have invested their cash in an online App known as Amazon Web Worker is counting their losses.

This is after the App was deleted over the weekend from the Google Play Store, without any official communication.

Gullible investors were lured into this deadly trap with different investment options on the App, offering returns of up to 38.5% for a deposit of 7 days.

When the App went down, hundreds of Kenyans who have opened accounts and created downlines or referrals made of close friends or relatives had cash in the system they could not access.

It has since been established that this App is not affiliated with International retailer Amazon. The website that hosted this platform is no longer available online neither are the pages on Facebook and Twitter.

Victims who shared their data on the Amazon Web Worker platform have been advised to inform their bank, change passwords for online accounts including M-PESA or report the matter to the police anti-fraud unit.

While Safaricom has revealed plans to partner with Amazon, officials at the telco said this is still a work in progress.

Thus, Amazon Web Worker App with an M-PESA component has been described as a work by fraudsters.

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Amazon Web Worker registration requirements

To register into the member system of this Mobile App, players were being asked for such personal details as full names, mobile phone number, and M-PESA Account particulars.

In the financial investment section, a member was told they could earn an interest of 38.5% if they locked their initial investment for seven days, 204.0% for 30 days, 600% for 75 days, 1020% for 120 days, 1620% for 180 days and 3420% for 360 days.

A link https://awwafrica.com/referral/dr6ggtvp. which has also shut, is what the designers of the Amazon Web Worker App were using to lure unsuspecting investors into the scam.

Safaricom is reportedly following up on M-PESA till numbers that could have been taken from the firm then edited and used by crooks to lure clients to the App.

In a text, the fraudsters explained the unavailability of the App in the Google Playstore to change the payment broker from a firm known as Renak to Kivaa.

The schemers said this was due to the increased number of subscribers and volume of transactions on the App, promising subscribers that the App will be up again on Tuesday, 18th May 2021.

ALSO READ: Regulators Caution Against Unlicensed Financial Services

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Car & General’s Half-year Profit Rises to KSh460.6 Million on Increased Demand for Motorcycles

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Car & General’s net profit for the six months that ended on 31st March 2021 jumped by 180% boosted by the high demand for two-wheelers and three-wheelers in Kenya and Tanzania. The company’s net profit climbed to KSh460.6 million at the end of 31st March 2021, from KSh164.8 million in March 2020.

Car & General operates in the automotive sector, real estate industry, financial services, and agribusiness sector.

Thanks to a rise in the demand for generators, forklifts, tractors, and motorcycles, the company’s revenue advanced by 28% to KSh8.2 billion from KSh6.3 billion reported in the corresponding period in 2020. The company reported improved sales in Kenya, Tanzania and Uganda.

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Car & General’s operating and administrative expenses increased to KSh744 million in the six months through March 2021, from KSh644.7 million at the end of March 2020 due to increased demand for the company’s products.

In the near term, the NSE listed firm expects reduced rental income from its Nairobi Mega property situated along Uhuru highway due to the ongoing construction and covid19 restrictions which have adversely affected the investment property.

Car & General’s investment in Watu Credit limited is well on track. The company recently invested in a helmet manufacturing facility which is expected to bring in profit in the coming financial year.

The company said that the next six months of the year remain unpredictable but it is focusing on increasing its market share, preserving cash, and improving working capital efficiencies.

Car & General’s directors did not recommend a dividend payment for the period that ended on 31st March 2021.

Related : Car & General Declares KSh 32 Million Dividend Payout

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