The government is set to once again lose a sizeable amount of money due to questionable dealings in the construction of yet another dam, barely a year and some months since the Arror-Kimwarer scandal.
In the latest unsuccessful venture, which the media has strangely ignored, the government lost a bid to try and wrestle close to a hundred new functioning vehicles from ABSA and CMC Di Ravenna which intend to auction them and settle a 585 million debt that exists between them .
This latest development follows Justice Francis Tuiyott’s ruling which upheld a consent agreed between CMC and Absa to freeze the transfer of the cars pending the outcome of a suit in which the bank is seeking to auction the vehicles over a Sh585 million loan advanced to the Italian firm in 2017.
Rift Valley Water Services Board (RVWSB), which issued the contract for the Itare Dam, sought to overturn the consent agreement, arguing that it had rights over some of the cars and that the deal was done without its knowledge.
The judge dismissed the water services board’s petition, arguing that the ownership of the vehicles, including Toyota Prados, Corollas and pick-up trucks, was to vest in the agency only upon completion of the project which is yet to happen.
He also declined to enjoin RVWSB in the suit where Absa is seeking to auction the cars and recover its loan given the uncertainty in building the dam.
“On the material before court, and without further evidence or full argument, I am unable to say that the claim of breach of contract by RVWSB will prevail yet I cannot say it is trivial,” he said.
The judge said while the agency may have an arguable case against CMC for breach of contract, it failed to demonstrate an arguable case against Absa’s interest.
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