FORMER Vice President Moody Awori has been cited in a Sh10.5 million loan issued to a trader whose ownership of a Karen plot is in dispute.
Several companies and individuals are laying claim to the 134 acres in Karen.
The protracted court case was instigated by businessman Horatius Da Gama Rose through his company Muchanga Investments.
Da Gama Rose said some unknown companies had grabbed his farm and were in the process of subdividing it.
Justice Lucy Gacheru heard in Milimani law courts yesterday that Awori witnessed and signed the loan application by Da Gama Rose to Barclays Bank.
Both Awori and Da Gama Rose were directors of Muchanga Investments.
“There has been a relation between the bank and Muchanga Investments over the Karen land,” Muchanga Investments’ lawyer Cecil Miller said.
He said the bank had been appointed by the initial landowner Arnold Brandley as the sole administrator of his property.
Miller said the bank exercised its mandate and sold the land to Muchanga Investments in 1983.
“Exactly at 3.30pm on August 30, 1983, the title of the property was used to secure a Sh10.5million loan to Da Gama Rose”.
The lawyer said the loan guaranteed by Awori was repaid and the title deed released to Muchanga Investments.
He said the title was released to Da Gama Rose through the law firm of Sharpley Barret in 1989.
“All these entries were reflected in the records at the Lands ministry,” he said.
Miller urged the judge to confirm the injunction barring third parties from encroaching into the land legally sold to Muchanga Investments for Sh1.3 million in 1983.
A company associated with a former NSSF managing trustee Josephat Koinzollo questioned the manner in which Muchanga Invsetments bought the land from Barclays Bank.
The firm said there are no proper records filed in court over the sale agreement.
Lawyer Stephen Gikera told the judge the will of Brandley only explained the bequeathing of four acres of his land to his daughter.
“The will remained silent about the rest of the land,” Gikera told the judge.
He said documents on how the land changed hands from Brandley, the bank and Muchanga have not been tendered in court.
The hearing continues.
