4 COURTS

THE Star

Tuesday, July 23, 2013

G4S company to pay for Sh18.5m lost in transit

BY JILLO KADIDA A security company has been ordered to compensate a bank for Sh18.5 million lost in transit more than ten years ago. Securicor Security Services Kenya that has since been renamed G4S has been ordered to pay Consolidated Bank Sh18.5 million which got lost in 2002 on the way from Maua to Nairobi. The compensation order was given by High Court judge George Ogola saying the bank proved its case against G4S. In the end, I have found that the plaintiff (bank) has proved its case on a balance of probability and is entitled to judgment against the defendant (Securicor company), said judge Ogola. According to suit papers the security company was attacked somewhere between Maua and Meru town by armed men and the money stolen. And when the money was reported lost, the bank sued the security company for negligence and breach of contract. The two companies had entered into a written contract in December 23, 2002.

Jirongo sued over Sh32m

BY STAR REPORTER FORMER Lugari MP Cyrus Jirongo has been sued by a private company demanding Sh32 million in a land transaction deal. Emris Investment Ltd says Jirongo sold it some piece of land in Imara Daima in Nairobi and cancelled the contract without its knowledge, selling it to a third party. Also sued are two other companies namely Cyperr Enterprises Ltd and OffShore Trading Company. According to suit papers in court, Emris Investment entered into a contract with Cyperr Enterprises on April 8, 2008. Based on the agreement, Emris Investment paid Sh12 million as deposit of the purchase price. And according to the agreement Emris Investment upon payment of deposit was to take vacant position of the land in question. Prior to completion of the agreement, ownership dispute arose between the seller and another firm called Nandlal and Company Limited. This was subsequently settled in 2012. However Cyperr Enterprises unilaterally terminated the agreement and sold the parcel to a third party at a higher purchase price, and offered to compensate Emris a sum of Sh50,000.

Photo/ file

insecure? A police officer inspects a G4S car that was abandoned at Upper Hill, Nairobi, during a robbery in 2010. The security company denied being negligent or breaching the contract. It said it was not aware about the exact amount of money in the container which was stolen while on transit. The company said the bank under the contract ought to have given a written notice in 15 days to inform about the lost cash which it didnt do. The bank blames the company for failing to use armed police escort. It said the loss was suspicious because the employees of the company did not call the bank or their own bosses in Nairobi to report the robbery. Instead, they reported the matter to the police.

Pejeta ex-staffer says firm evaded tax

Photo/ Philip kamakya

BY SAM KIPLAGAT AN accountant yesterday accused his former employer of tax evasion as he fights for compensation after he was sacked four years ago. Giving his testimony before Industrial Court judge James Rika, David Muhoro said two employees of Ol Pejeta Ranching Ltd were hired as consultants but an audit later revealed that they were employees of the company. In the report, which he tabled in court, Muhoro said although the company was commended for high tax compliance, there were instances where

it evaded tax. The audit, which was done by KPMG in June 2007, revealed that two white managers had not paid tax amounting to Sh8.9 million. Muhoro told Justice Rika that although the two managers were hired as consultants, they received taxable allowances such as house, bonuses, leave and motor vehicle allowances. He said that the sole reason for hiring the two white managers as consultants was to evade tax. The company in reply, wants the court to dismiss the case arguing that Muhoro was paid all his dues. The case was adjourned to September 27.

Waititu, Rangwe MP face contempt of court charges

BY CAROLE MAINA An attempt to delay contempt of court proceedings against Rangwe MP George Ogola and former Embakasi MP Ferdinand Waititu was yesterday rejected by court. Justice Pauline Nyamweya said the proceedings filed by a real estate developer in a land dispute involving the sale and subdividing of a 50acre plot in Embakasi will be heard and determined before hearing the main suit. Benson Ritho has sued the two politicians and a land surveyor for allegedly sub-dividing and selling out his plots without consent. He wants the two punished for disobeying court order that restrained them from interfering with the disputed plot. Yesterday, lawyers wanted the contempt proceedings argued in the main petition but Justice Nyamweya said the application will be heard and determined separately.

justice: David Muhoro, a former manager with Ol Pejeta, who is seeking compensation.

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