Connect with us

Business

German investor wants three judges to recuse themselves from case

Published

on

Loading...


Economy

Court of appeal judge Alnashir Visram on July 20, 2017. FILE PHOTO | NMG 

A German investor fighting over the ownership of Sh1 billion Salama Beach Hotel in Watamu, Kilifi County, wants three Court of Appeal Judges to recuse themselves from the case.

Hans Juergen Langer has filed an application for recusal of Justices Alnashir Visram , Wanjiru Karanja and Martha Koome claiming they will not deliver justice.

The investor claims the three judges hearing his claim for the ownership of the lucrative hotel accusing them of having a pre-set mind in the case.

“The appellants are apprehensive that the aforesaid bench shall be incapable of deviating or departing from the view and or opinion it had made and thus are already biased in limine,” Mr Langer said.

The three appellate judges had in December last year held a high court decision that had ruled that the appellant was not the director of the hotel and that he should surrender its ownership to Isaac Rodrot (Kenyan) and his Italian counterpart Stefano Uccelli.

Mr Langer and his wife Zahra Langer are embroiled in a battle over the ownership of the property with Mr Rodrot and Ms Uccelli.

In the judgment, appellate judges put the proprietorship of the luxurious beach resort under Mr Rodrot after it ruled that Mr Langer and his wife fraudulently took away the ownership of the hotel from him (Rodrot).

But despite this judgement which is subject of appeal at the Supreme Court, Rodrot’s efforts to execute the judgment has proved futile as the appellants have used the police to keep him off the property.

Loading...

Mr Langer has applied to challenge this decision at the Supreme Court.

He argued that the judges made a biased finding and thus he is apprehensive that they (judges) by default have a pre-set mind hence are incapable of making an impartial decision.

“The appellants are further hesitant that the aforesaid judges had already condemned them unheard when it failed to appreciate that the subject of fraud can only be established in a full hearing which involves witness testimony and cross-examination and not summarily by affidavit evidence,” he said.

The judges have directed the appellant to file the respondent with the application within two weeks so that the matter can be fixed for hearing.

Mr Langer had asked the court to preserve the assets including the hotel from any interference by the respondents until the ownership wrangle is settled.

The German investor has accused Ventagio International SA, the original company that owned the property, Mr Rodrot and Mr Uccelli who are directors of the hotel, of attempted theft of funds, property shares and hotel businesses.

Mr Langer claims that the respondents have invented methods to frustrate, defraud and swindle huge sums of money from him and the wife, who are the shareholders of the hotel.

However, the respondents through their lawyer Joseph Munyithya says that matter touching on possession, shareholding and control of the luxurious property had been dealt with conclusively in a judgment dated December 15, last year.

The four have been engaged in battle over the ownership of the lucrative property since 2009, and has another suit pending before Malindi Resident Judge Weldon Korir.

The German couple have claimed that the Appellate Court’s judgment lacks clarity on the real shareholders of the property.



Source link

Loading...
Continue Reading

Business

Firm roots for PPPs in universal healthCARE

Published

on

Loading...
General Manager of General Electric (GE) Health for sub-Sharan Africa, Eyong Ebai

The government has been urged to engage the private sector more in funding universal healthcare in the wake of Covid-19.

General Manager of General Electric (GE) Health for sub-Sharan Africa Eyong Ebai said the pandemic had demonstrated that governments alone cannot fund public health systems.

“There are two sides to the discussion and the first is in regards to supporting governments to create demand-side activity so there is appropriate funding that the supply side can then provide services to the general public,” said Mr Ebai in a recent interview. 

“On the demand side, we need to focus on instruments that can share risk and typically this will be in the form of health insurance programmes that can be national health insurance schemes like in Ghana, Nigeria and South Africa,” he added.

In the upcoming 2021/2022 budget, the National Treasury has allocated Sh121 billion to the Health Ministry, representing an increase of Sh3 billion from the current financial year that ends in June. 

Treasury has allocated another Sh47.7 billion for the universal healthcare plan, bringing the total allocation to the country’s health sector at Sh168 billion for the 2021/2022 financial year. 

Loading...

However, this represents 1.7 per cent of the country’s GDP and is below the international average spending for low-income countries that stood at 6.3 per cent as of 2019.

According to Ebai, governments can also tap into regional authorities through developing state or provincial-wide health insurance schemes that will directly benefit local communities, thus easing the pressure on central governments. 

Take a quick survey and help us improve our website!

Take a survey

“The real trick for Africa is to tap into the informal sector as well as the formal sector,” he explained.

“This means everyone pays a small premium towards a pot which then goes towards providing coverage for individuals when they become unwell.” 

This is especially crucial as more than 80 per cent of patients on the continent still meet trig healthcare bills through out-of-pocket payments.

Loading...
Continue Reading

Business

Third time lucky? Amana CEO makes fresh stab at saving firm

Published

on

Loading...

Reginald Kadzutu, Amana Capital acting CEO.

For the past few years, Reginald Kadzutu and Amana Capital have been joined at the hip.

The source of their shared torment has been the ghosts of collapsed giant retailer Nakumatt, which sank with the investment firm’s Sh255 million.

And any attempts to exorcise Nakumatt’s ghosts have proven unsuccessful so far. A strategic investor touted to pump Sh300 million and recapitalise the investment firm shied away at the last minute.

It was not clear why Sanjeet Thethy, the strategic investor, backed out.

Now, Kadzutu is back at Amana Capital in his third stab at turning around the company.

“My title is Interim Chief Executive Officer; I’m here just to turn it around. I have given myself three years,” Kadzutu told Financial Standard recently on his return at the investment firm.  

In February last year, he appeared before anxious investors to explain how their money put in Nakumatt commercial papers would be recovered.

This was at a testy Extraordinary General Meeting (EGM) of investors in the Amana Shilling Fund, which overcame a liquidation vote that would have impacted the future of the entire company.

Take a quick survey and help us improve our website!

Take a survey

Withdrawals had been frozen and investors faced losing their money, with the fund’s only other investment being Sh185 million fixed deposits put in the troubled Jamii Bora Bank (now Kingdom Bank).

Kadzutu, however, explained that there is a misconception that he was part of the team that made the decision to invest in Nakumatt.

He had worked in Amana before for four years between 2008 and 2012 and then left for tech firm Craft Silicon.

Kadzutu rejoined the fund manager in 2018 after it had already invested in Nakumatt in 2016. His return, he insisted, was “to clean up the  Nakumatt mess.”

“The reason I actually came in was to sort the Nakumatt issue. I advised the firm to inform people they had invested in Nakumatt. I was the one who held the first EGM.”

He said he was also the one who notified the Capital Markets Authority (CMA) of the ill-fated investment and froze withdrawals by anxious investors.

His second stint at the firm, however, was short-lived and left for rival Zamara in August 2019.

“The framework of what they needed to do was already in place. I’d done my job to freeze it and let it be known to everyone and gave the solutions,” he said. Now, Kadzutu says Amana Capital is “aggressively” following up on the Nakumatt investment.

Loading...

“We believe someone should be held accountable, and money should not be lost,” he said.

The CEO said they are pursuing legal routes but is quick to add that the intention is not to “recover everything.”

“Atul Shah is not broke,” deadpanned Kadzutu.

He pointed an accusing finger at the market regulator, CMA, arguing that it could have done more to protect investors.

“If the authority were really after protecting investors, they’d go after Nakumatt and manage to get that Sh4 billion… they have the capacity,” he explained.

Commercial paper holders are part of the unsecured creditors and at the bottom of the food chain when it comes to any funds that would be recovered from Nakumatt.

The investment firm is part of investors who lost a total of Sh4 billion after buying Nakumatt’s commercial papers.

Nakumatt went down with a Sh38 billion debt, with the unsecured short-term debt instruments it had issued to about 800 institutions going up in smoke.

Kadzutu is well aware of the implication of the nature of the debt and said they’ll “pursue other avenues that may benefit us.”

Charting a recovery for Amana Capital saw 59 per cent of funds in the Amana Shilling Fund written off and substituted for a 30 per cent equity stake in the firm, which was part of the AGM resolutions.

The 30 per cent equity shares will be issued “proportionally” to individual holdings of funds lost in the fund.

They will also take up board seats. Liquidity has been one of the challenges for the investment firm.

Kadzutu said the fund not only had money in Nakumatt and JBB but had “deposits all over.”

The third tier bank was also facing liquidity problems. Early last year, Last year, Co-operative Bank completed the acquisition of 90 per cent of the troubled bank.

Only one fund had invested in Nakumatt and JBB.

The other funds by the investment firm include the Amana Growth Fund, Umbrella Fund and the Balanced Fund, which were not affected.

He said by December last year, Co-op Bank had paid the whole amount.  

This coincided with his return to the firm. “We paid and are still paying others,” said the CEO. “This shows the element of putting effort into trying to make sure that people get their money,” he added.

Kadzutu said legally, they could have written off the hole created by Nakumatt but “mistakes happen,” hence the option to convert the debt into equity.

 “Once you write off, all is lost. But in this new arrangement, what you are losing is liquidity,” This will see investors get dividends after turning the firm around and doing a share buy-back, according to Kadzutu.

“Our plan is that in two to three years, we can buy back those shares and definitely compensate for the interest that you’d have otherwise earned over the period,” he said.  

He said the valuation and allocation has been done, and lawyers are now working on changing the company from a private to a public entity, with the shareholders now set to rise to 1,000.  

[email protected]     

Loading...
Continue Reading

Business

The upside of waiving the patent on Covid-19 vaccines

Published

on

Loading...

The patent holder gets a monopoly to make money if the patent is commercialised.

Loading...
Continue Reading
Advertisement
Loading...
Advertisement
Loading...

Trending