Omtatah wants court to stop Affordable Housing payments to private firm

Busia Senator Okiya Omtatah. [Benard Orwongo,Standard]

Busia Senator Okiya Omtatah has moved to the High Court seeking to stop further payments under a multibillion-shilling Affordable Housing project to a private firm.

Omtatah wants the court to prohibit the government from making further payments to Savola Investment Limited under Tender No. MLPWHUD/SDHUD/ESP/213/2023-2024 (Cluster 19) until the company’s ownership, directorship and control are conclusively established.

In his petition at the High Court, the Senator wants declaration that the the Ministry of Lands, Public Works, Housing and Urban Development is under an obligation to protect public interest by withholding further payments to Savola until the company’s ownership feud is resolved.

"A Declaration that the 1st Respondent is under an obligation to protect the public interest by withholding any further payments to the 3rd Respondent until the company’s ownership feud is resolved," he seeks

Omtatah argues that the government has violated or threatens to violate several constitutional provisions by processing or disbursing public funds while the ownership of the company remains contested.

He wants the court to declare that the government has violated or threatens to violate Articles 10(2)(b) and (c), 47(1), 201(a), 201(b)(i) and (d), 226(5) and 227(1) of the Constitution.

The Senator has also cited Section 68 of the Public Finance Management Act, 2012, Regulation 96 of the Public Finance Management (National Government) Regulations, 2015, and Section 45 of the Public Procurement and Asset Disposal Act, 2015.

According to Omtatah, the government should not continue processing payments when the true ownership, directorship, and control of Savola Investment Limited is contested and has not been conclusively ascertained.

He is seeking an order prohibiting any further payments to Savola, or to any person, account or entity under the disputed tender.

Omtatah wants the payments stopped until the true ownership, directorship, and control of Savola Investment Limited have been conclusively ascertained.

He further wants a current CR12 confirming the company’s undisputed lawful directors to be issued by the Registrar of Companies before any further payments are made.

The Senator argues that continued disbursement of public funds under the tender would undermine constitutional principles governing public finance, transparency, accountability and procurement.

He is asking the court to intervene and safeguard public funds until the ownership dispute is conclusively resolved.

The case is pending hearing.