The Kalonzo Musyoka Foundation claims that Non-Government Organisations Coordination Board never gave it a chance to defend itself.
The foundation claims the board did not give it a chance to rebut claims of money laundering and operating illegal bank accounts.
In its court papers filed before the High Court yesterday by lawyer Albert Simiyu, the foundation claimed that the move by the NGO board is in breach of the law as they were not allowed to answer to the allegations before a decision was made.
According to the former Vice President's organisation, the board does not have any powers to freeze its accounts without first obtaining a court order, which allegedly was not done.
"The respondent's decision is malicious as the applicant was not given a fair chance to be heard," the court papers read.
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The court papers filed yesterday read that on April 10 this year, the Fazul Mahamed-led organisation wrote to the foundation that it was compliant with the law requiring it to disclose its source of funds and also account for it.