The Auctioneers Licensing Board has suspended an auctioneer for six months after finding that he illegally auctioned two trucks belonging to a businessman despite the underlying debt having already been settled.
In a ruling delivered at the Milimani Law Courts, the board found that auctioneer Eliud Chai Wambu of Chador Auctioneers unlawfully proceeded with the sale of the vehicles owned by businessman Stephen Nganga Njuguna after the outstanding debt had been cleared.
Board chairperson Njeri Thuku ordered Wambu’s suspension from practice for six months and directed him to pay Sh50,000 to the complainant.
The board also imposed a Sh100,000 penalty payable to the regulator.
The disciplinary action followed investigations into a complaint lodged by Njuguna, who challenged the auction and argued that there was no legal basis for the sale since the debt had already been paid.
In its findings, the board declared the auction illegal and faulted the auctioneer for proceeding with the sale despite evidence that the debt had been settled.
However, it ruled that any claim for damages arising from the loss of the trucks would have to be pursued through the civil courts.
The board advised Njuguna to file a separate civil suit to seek compensation for losses suffered as a result of the auction.
Speaking after the ruling, Njuguna welcomed the decision, describing it as a vindication of his position.
He said he would proceed to court to seek further compensation from the auctioneers.
The case drew widespread public attention after videos and reports of the auction circulated online, triggering debate over the conduct of auctioneers and the enforcement of debt recovery procedures.
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