Former coffee union official faces hammer

The sale of 20 acres of land by a farmers' company ten years ago has returned to haunt a former official.

Francis Gathiga Ngone, a former chairman at Mugumo ini Farmers Limited, had his family property attached by an auctioneer to recover a Sh14.6 million debt, following a protracted legal battle.

The shareholders lodged a civil suit against Ngone and Murang'a Farmers Cooperative Union seeking to recover the Sh7 million that went missing upon the sale of 20 acres of land in Makuyu in 2015. Riel Capital Limited, the buyer, deposited Sh18 million in a bank account managed by the company's three officials.

When the auctioneer stormed into Ngone's homestead on Wednesday last week, they seized Ngone's two vehicles, a truck, household goods, pigs, goats and clothes, seeking to recover the amount following a court order.

Chief Magistrate Peter Ndwiga issued an attachment order to Beta Base Auctioneers on March 21, but Ngone moved to appeal against it.

From the suit lodged in court in 2017, the shareholders, through Joseph Kamande, have been pursuing to recover the millions of shillings.

In the dramatic move to save the property from attachment, an insider said Ngone managed to convince the auctioneers and, hours later, secured Sh4.5 million that was drawn from Ikundu Farm bank account, which is managed by the Murang'a Farmers Cooperative Union.

Kamande declined to comment on the issue.

In court documents, the controversy was accelerated after revelation that Ngone, with two other company officials, directed the purchaser of the land to deposit part of the Sh7 million into the account of the Murang'a Farmers Union on diverse dates between July 21, 2015 and February 19, 2016.

In the judgment, the court said there was overwhelming evidence that Ngone sold the suit land while serving as a director but opened a bank account without approval or a resolution of the members.

In the suit, the company listed grounds as opening an account at the Murang'a union with consent of the board of directors and members resolution and embezzlement of Sh7 million.

In a judgment that had been contested by Ngone, Chief Magistrate Susan Mwangi ordered payment of the interest of Sh7,000,000 with effect from July 12,2015, at the court rates until full payment.

There is a pending appeal before the High Court scheduled for mention on July 26.