Nairobi 2nd June 2020. Jubilee Secretary General – Raphael Tuju and his lawyers failed in a bid to have high court Justice Grace Nzioka recuse herself from an ongoing Ksh 1.6 billion debt row with East African Development Bank (EADB).
Mr. Tuju obtained the loan through his company Dari limited on April 10, 2015, with the intention of constructing 12 – Sh100 million two-storey, flat-roofed bungalows sitting on 20 acres, and the purchase of a 94-year-old bungalow built by a Scottish missionary, Dr. Albert Patterson.
The bank says that from November 2017 it became clear that Dari limited had defaulted on the loan repayment, setting the stage for asset seizure pursuant to a signed contract by both parties, where there was mutual agreement on how the servicing and recovery of the loan would be handled.
In a strongly worded application filed on the 21st of May, Tuju through his lawyers hysterically argued that Justice Nzioka had demonstrated bias in the manner in which she had handled the matter.
He cited the denial of a fair hearing alleging that the Judge had essentially set aside some previous orders issued late this year.
Justice Nzioka ruled that the allegations contained in an application presented by Tuju’s lawyer SC Paul Nyamodi – subsequently requiring her to rescues herself from the matter, were baseless and a complete misrepresentation of the facts.
EADB through its lawyer SC Fred Ojiambo argued that the application was nothing more than a tactic meant to delay the important matters.
Justice Nzioka also cited repeated non-compliance of court orders by Tuju’s company Dari limited.
For instance, despite court orders issued by Justice Wilfrida Okwany on May 3rd and May 23rd allowing EADB’s receiver’s full access to the Entim Sidai and Dari Restaurant properties listed as security for the loan, the receivers have repeatedly been denied access to both properties under unclear circumstances.
In a virtual session on Tuesday afternoon, Justice Nzioka ruled that the matter now be placed before the Presiding Judge Kasango for the review of her orders issued on 19th March 2020.