SECTIONS

Firm seeks liquidation of Myspace Properties

One of the houses constructed by MySpace properties at Nyali estate in Mombasa in 2015. [Omondi Onyango, Standard]

A contractor — Teams Construction — has filed an insolvency petition against Myspace Properties over Sh110.7 million debt.  

Teams said the amount due as computed up to September 15, 2021, was the balance of the contractor’s fees, interest and construction services rendered to the company.

Myspace, founded by Mr Mwenda Thuranira, had hired the firm in November 2012 to build One Twiga Apartments off Links Road in Mombasa.

“Upon finalisation and handover of the project, in breach of its obligations under the contract, the company failed to pay to the petitioner the balance of construction fees due,” said Team Construction in a petition through its lawyers, Shapley Barret and Company Advocates.

They pursued arbitration and Justice E. Togbor (retired) was appointed arbitrator.

After arbitration, the parties reached a consent of arbitral award on September 4, 2014, which was adopted by the Court on December 15, 2015. However, Team Construction said despite repeated court action by the petitioner, including attempts to execute and constant reminders, the company has to date not honoured the decree.

“The petitioner has not succeeded in tracing any attachable assets owned by the company and all attempts at execution have been frustrated by the Company including by hiring “goons” and using rogue officers of the Kenya Police to forestall the same,” says the construction firm.

In the petition, Team Construction says vehicles attached for auction “disappeared” after Myspace Properties hid or took them to unknown locations or transferred them to third parties.

“All this was done with protection from rogue or compromised police officers,” it noted.

Contractual clause

The petitioner was also unsuccessful in attaching shares and arresting the directors.

The debt rose from Sh47.7 million and continues to rise owing to interest, court costs and penalties arising from agreed contractual clauses.

“Despite the company’s director, Mr Thuranira, giving a personal guarantee for the debt, no amount has, to date, been paid to the petitioner,” Team Construction says.

This has forced it to take the liquidation route.

The firm wants a receiver appointed and the costs granted to the petitioner.

In 2019, the Nairobi Security Exchange admitted Myspace Properties under the Ibuka Programme, an incubation and acceleration programme designed to boost firms with growth prospects.