Former Kiambu governor Ferdinand Waititu has lost a bid to suspend orders blocking him from collecting income generated from his hotel in Nairobi.
Justice Nixon Sifuna said the orders issued last year will remain in force until it's determined that the property in question is not a proceed of crime.
The court had in May last year issued orders that Waititu be restrained from collecting income generated from the hotel and further appointed a receiver for purposes of collecting the income, managing, controlling and possessing of the property.
Aggrieved, the former county chief applied to have those orders varied. He argued that the order diverted the income from them which usually services a loan from Equity bank.
The hotel was charged to the bank as it was acquired through a loan of Sh200 million from a local bank. Waititu argued that the income from the property has at all times been used to service the loan for which it had been charged.
"The effect of the orders which we are seeking a suspension is that the servicing of the loan will be halted following the diverse of the income to accounts not directly managed by the bank," he said.
Waititu also argued that if a receiver is appointed to manage it, the hotel's income may dwindle s the receiver may not possess the zeal and necessary expertise to do business development and marketing.
But Justice Sifuna in declining his application said "any suspected property or funds in respect of which preservation orders have been made , needs to remain preserved until it is determined that its not a proceed of crime or until the subject has explained how it was acquired, or proved that it was not acquired through corrupt conduct"
The judge explained that setting aside such orders should only be made in exceptional, and deserving circumstances only.
‘In the circumstances of this case, I hold that the interim orders shall remain until this suit has been determined. In essence, the application fails and is disallowed,’he said.
In closing, the judge directed the suit be heard and determined in the next 60 days.
