Tourism CS Alfred Mutua is facing a lawsuit after an investor moved to court seeking to have him pay Sh60 million for an alleged purchase of shares in a hotel in Lavington.
In a petition filed before the High Court, Ubhi Ripthuman Sigh claimed that on October 6, 2022, he and Mutua entered into an agreement where he sold 15 shares of hotel Brazilian Rodizio Limited to the CS for the aforementioned amount.
The agreement, according to Sigh, dictated that the amount be paid to a joint account in the names of their advocates within 30 days but that did not happen.
Further, Sigh claimed that it was agreed that the directors of the company would meet to approve the transaction and for him to transfer his legal title of the said shares to Mutua.
In the suit listing the CS, co-director Emily Chebey Loroupe and the hotel as the respondents, Sigh said the meeting did not happen either.
Seeking to get the claimed money, the investor said he wrote to Mutua on June 28, 2023, making a formal demand for the payment but according to him, the same was ignored.
Sigh claims that after getting the 15 shares, the former governor became a duly registered director and majority shareholder of the company.
He alleged that even though he is also a co-director, he has been sidelined in the decision-making, management and daily affairs of the company despite making several requests for information.
The man is apprehensive that in the event of a mismanagement of the company operations, he will be exposed to liabilities to third parties and stakeholders.
Sigh told the court that he recently became aware of various dealings and transactions in the company accounts at NCBA bank, Lavington Branch, but he never approved the transactions or authorised signatory of the company.
Further, he alleges that his letters to the respondents requesting copies of various company documents relating to the Financial Year 2022/23, have been ignored.
"In the circumstances, it has therefore become necessary and urgent to seek this court's intervention to protect the applicant (Sigh) from being subjected to further prejudice by the respondents pending the hearing and the determination of the application herein inter-parties as well as the main suit," the document reads.
Pending the determination, Sign wants the court to restrain the co-directors from withdrawing, transferring or dealing with the money held in the three accounts under the hotel's name.
He is also seeking to have Mutua and Loroupe supply him with copies of the hotel's audited accounts and income tax return for 2022, financial statements, income statement and cash flow statement for FY 2022/23, debtors and creditors report, bank reconciliation report and directors' accounts among others.
Before selling 15 shares to Mutua, Sigh says he had 30 per cent of the company after purchasing the percentage from Loroupe for Sh30 million on March 9, 2022.