As revealed in part one of this story, Stephen Jenning introduced a new interest rate (33%) to the Tatu City loan, which was not known to other stakeholders
This started the acrimony between the partners with Steve Mwagiru deciding to give it up and dissolve the companies. This was fought out in the courts.
Meanwhile Jennings continued to charge the company now called Kofinaf interest at 33% (and 50% per annum at times) and through some loopholes, decided to reduce the shareholding of the other partners. According to him, the others did not pay anything but if that was the case, why would Socfinaf sell at such a discount.
Read: Interesting Facts About Tatu City That Have Been Hidden From The Public [Part 1]
Jennings took advantage of the lack of paperwork and decided to oust them entirely. No signed audited accounts were given after 2013, accounts given recently show great anomalies and EGMs were canceled.
Tatu City and Kofinaf have to date sold land to the tune of $140 million (Ksh14 billion) which would have catered for the Ksh6.5 billion loan but the accounts show otherwise.
Draft accounts have been prepared by Ernst + Young but the Directors have yet to get a signed audited set of accounts.
“It is prudent to look at the interest charges for each year as well as legal fees and make a judgement on the quantum of business conducted at Tatu City against these humongous charges,” says one of the shareholders.
Another issue to be red-flagged is the sudden cancellation of the scheduled Tatu City Annual General Meeting (AGM) by a lawyer from Coulson and Harney. As we speak now, the three directors Shah, Nyagah and Mwagiru have no idea what their shareholding in Tatu City is.
Read: CBK Set To Abolish 14% Interest Rate Cap
Jennings knew of the weak point and has exploited it. To discredit Shah who had no part in the initial dealings but is significant because of Bidco, he launched a smear campaign. It has now become apparent that the conspirators initiated and coordinated false and sensational complaints against Bidco to its partners, investors and business associates through a shadowy organisation called Bidco Truth Coalition controlled by them.
Further, they conducted a digital media war against Bidco by developing false write-ups, blogs and videos with malicious statements alleging various statutory and regulatory breaches and malpractices. They also engineered complaints and demonstrations against Bidco and indeed attacked Shah and the company in every conceivable manner.
To respond to the false and malicious information being circulated in the press and social media on its employee, environmental and tax compliance matters, Bidco reached out to all its stakeholders and partners with the facts and ensured that they were aware of the truth with documents and certificates demonstrating compliance
Read: Ministry Of Health Facing Ksh7 Billion Scandal
It appears that the smear campaign against Bidco and Shah including picketing against him in London, was entirely instigated by the same party, was to build a bias against Vimal that influenced this arbitration award in London.
They took advantage of the fact that Shah did not speak out publicly on the advice of his lawyers. There are court cases and complaints pending in Kenyan courts on all the matters mentioned above and since matters were sub-judice, Shah did not want to be held in contempt of court.
Appearing before a parliamentary committee on land, Nyagah warned Kenyans from investing at the Tatu City, citing several cases of swindling by Jennings.
“I must warn that the property is under control of foreign investors (Jennings) and directors now and if anyone purchases the land they are not given full ownership so in case something happens and the foreigners take off its at your own peril,” Nyaga warned.
A source close to the dealings reveals that most of the monies in these transactions are sent to offshore account, which could be a case of money laundering.
It is not a personal loss that is of note here but that Kenyans have lost the opportunity of the Tatu City vision.
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