Battle of wits as Tuju’s firm accounts frozen

Jubilee Party Secretary General Raphael Tuju. [Standard]

Jubilee Party Secretary General Raphael Tuju’s firm, Dari Limited, clashed with receiver managers appointed by East Africa Development Bank (EABD) at the High Court after its accounts were frozen over Sh1.5 billion loan battle.

It emerged yesterday that suppliers and employees of the firm might not get their pay this month as their banks have declined to take instructions from Dari, after receiver managers from Water House Coopers wrote to them, concerning the dispute.

Dari lawyers Paul Muite, Paul Nyamodi and Bridget Ndong claim that EADB and the receiver managers ordered the freeze after the court had heard the matter and ordered that nothing should be disposed off before the case is determined.

Justice Graze Nzioka heard that the lender and EADB and the managers want the firm to collapse.

SEE ALSO :Court puts Tuju’s firm under receivership over Sh1.5b debt

“The plaintiff operates a cashless business and has money in the accounts the defendants have frozen. The end of the month has come and it will not meet its obligations to suppliers and over 100 employees. The business should not be held on ransom by receivers,” Dari lawyers argued.

On the other hand, EADB and the receiver managers lawyer Fred Ojiambo disputed the claim, saying the banks were only cautious not to deal with Dari or its managers after they learnt about the case.

The court also heard that Dari had declined to fully disclose information, which would enable receiver managers run it.

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Ojiambo argued that although Tuju is unwell, his children who are also directors or Dari’s managers could furnish the court with the information. He accused Dari of unnecessarily delaying the case. The case continues next week on Monday.

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Dari LimitedJubilee Party Secretary General Raphael TujuJustice Graze Nzioka