High Court in Nairobi has found former Wajir Governor Mohamed Mohamud and his wife Kheira Maalim bankrupt for failing to pay Sh 4.1 million debt owed to a tiles company.
High Court judge David Majanja found that Mohamud and Kheira were unable to pay their dues owed to Autosteel and Tiles Limited despite a court order being issued in 2020.
The order of the Judge now paves the way for a trustee to manage the commercial and financial affairs of the ex-governor and his wife.
At the same time, the order also automatically disqualifies them from holding any public office or being directors of their companies or any other company.
According to the law, bankruptcy is not itself a crime. However, a person who is declared bankrupt is required to disclose to the trustee all the financial dealings in order for the debt to be repaid.
If he or she fails to disclose the required information, then criminal sanctions can be taken against such a person.
“A bankruptcy order is hereby issued against Mohamed Mohamoud Abdi and Kheira Maalim Mohamed. The official receiver is appointed as a trustee of the aforesaid debtors," ruled Justice Majanja.
The order stems from a judgment against the two issued by Justice Francis Tuiyott (now a Court of Appeal Judge) on January 17, 2020.
Justice Tuiyott said that Autosteel had proved its case against the two as they did not honor their end of the bargain after it provided tiles during the construction of their shopping mall called Sunrise in 2006.
The company argued that it was unfair for the governor and his wife to stop cheques they had written despite knowing that it had already done its job.
In their reply, March 17, 2010, and filed on the same day, Mohamud and Kheira stated that Autosteel offered shoddy and unsatisfactory work by providing weak and unstable tiles that allegedly got destroyed barely a week after they had been laid down
Further, they claimed that the firm allegedly failed to replace the tiles as agreed.
On payments made, the two said that other than the Sh800,000 paid, they also made a payment of Sh 1 million which Autosteel failed to credit.
As to the returned cheques, it was their argument that they stopped the cheques when it was apparent that Autosteel was not ready to replace the tiles.
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Mohamud was Wajir’s second governor.