SECTIONS

Mututho rehabilitation centre in trouble as three move to court over eviction

The main entrance to the Mututho Rehabilitation Centre. [Facebook]

The fate of a rehabilitation centre operated by former Nacada Board Chairperson John Mututho lies in the hands of a court in Nakuru as three seek to have him evicted from the land.

Mohammedjaffer Nanji, Ramzan Nanji, and Gullam Nanji filed a suit in 2017 claiming Mututho never completed a transaction deal for the purchase of the land. The three sued as trustees of Mohammedhusein Mulla Nanji Trust.

Ramzan, while testifying before Environment and Lands Court judge Mwangi Njoroge on Wednesday, said the trust had a primary and secondary school established in memory of the late Mohammedhusein Mulla Nanji in 1989 to provide welfare support for his family, Muslims and the public.

He said Mututho, the Director of Farmline Company Limited, had approached him in 2014 with a proposal to lease the primary school from the trust.

Ramzan said the trust agreed with Mututho that Farmline would access the primary school section for the purpose of renovation as negotiation on the lease continued. Mututho was to pay Sh450,000 to access the premise.

Court papers indicate that Mututho asked for additional three months to continue the renovation of the premises.

“The defendant continued to have access to the primary school without paying rent as the negotiations for the sale of the suit property continued,” read part of documents filed in court.

The documents indicate that the parties, by a sale agreement dated September 16, 2015, the trust agreed to sell to Farmline Company the property. The negotiation for the earlier intended lease was abandoned.

Mututho was sold Kiambogo/Kiambogo Block 2/527 and title number Kiambogo Block 2/528 at Sh45 million each, totaling Sh90 million for the primary school. The secondary school title number Kiambogo/Kiambogo Block 2/13 was valued at Sh180 million.

The total purchase price was Sh270 million, with a total deposit of Sh27 million to be paid to the trust before September 30, 2015. The balance of Sh243 million was to be paid to the trust advocate on or before the completion of 120 days for possession of the property.

In November 2015, the company paid Sh10 million to the trust, against the sale agreement and took possession of the primary school before paying the full amount.

“Possession was to be given to Farmline Company only upon payment of the whole purchase price and nothing else in the sale agreement could be deemed to grant possession in any other manner,” read the court document.

In March 2016, a notice was issued to Mututho for the payment of Sh17 million which he failed to adhere to. The trust warned Mututho from engaging in any work on the property.

The agreement provided that if the purchaser failed to complete the payment on stipulated time or breached obligations, the trust would be entitled to withdraw the sale agreement.

“If the Trust rescinded the sale agreement as aforesaid, then the deposit paid to the trust is forfeited to the trust in full, subject to the trust's right to take action against the purchaser for specific performance or damages,” read the document.

The trust withdrew the sale agreement in April 2016.

Nanji said that Mututho runs an institution called John Mututho Empowerment Centre (Jomec) for drug and alcoholic addicts at the primary school, where he collects revenues.

He sought orders for the payment of the Sh17 million balance and the eviction of Mututho from the property.

Hearing of the case continues on October 12.