The High Court has allowed former Cabinet Secretary Raphael Tuju to question an East African Development Bank official over his disputed loan with the regional lender.
In a ruling in favour of Mr Tuju, Justice Alfred Mabia allowed an application to cross-examine Mr David Odongo over a statement he made to the Directorate of Criminal Investigations (DCI) in December last year, in relation to the loan.
Judge Mabia ruled that the lender would not be prejudiced if the order was issued and that it was appropriate to prove the truth.
“Allowing parties to make statements under oath without reservation would be a travesty of justice. Court proceedings are solemn moments and the court should not tolerate lies. If this is allowed, the administration of justice will be at risk,” the judge said.
But the judge rejected the request to question the criminal investigation officer who recorded the statement, saying he was not a party to the case.
Mr Togo said he and his children were summoned by the Criminal Investigation Department last year over the loan and their details were recorded.
Bank officials were also summoned and learned that the statement made by Mr. Odongo contradicts what the EDB had stated and also supports its case on the nature of the $9.3 million loans as well as the history of the association between the two banks. Concerts.
He said Mr. Odongo confirmed that the project as envisaged in the agreement was two-stage in nature, namely the acquisition of the Tree Lane property as well as the construction and sale of the residential units, to repay the loan advanced to him.
The statement claims that the project was viable, as it was located on a 20-acre plot of land and Mr. Tojo was to develop about 20 villas, rehabilitate existing structures and that the development of the villas was the main component of the project, to enable Dari Limited to repay the loan.
The lender is accused of providing $9.1 million to buy the property, but the remaining balance, which was earmarked for developing high-end residential units for sale, was never disbursed. He said the sale of the units would have repaid the loan.
The loans were for the construction of a Sh100 million two-storey flat-roofed house on a 20-acre forested land called Entim Sidai, and the purchase of a 94-year-old single-storey house built by Scottish missionary Dr Albert Patterson, which now operates as a high-end restaurant.
The bank defended itself by saying that the balance was never disbursed because Darry Limited breached the agreement by failing to pay the amount of $11,462,757 as of November 10, 2017.
The British ruling was approved by the Supreme Court in February 2020, but Dare Ltd moved to the Court of Appeal and took the matter to the Supreme Court, where it questioned the adoption of the English ruling.
