A judge has refused to lift the orders that prevent former Kiambu Governor Ferdinand Waititu from collecting rental income from two of his properties, which were frozen last year due to suspicions they are proceeds of corruption.
High Court Judge Nixon Sifuna ruled on Wednesday, July 24, that the freeze order should stay in effect until the case concludes.
The judge, however, ordered an expedited hearing of the case, stating that forfeiture proceedings are delicate and punitive, and freeze orders should not be extended unnecessarily.
“In this case, I determine that the interim injunctive orders currently in place shall remain until the suit is resolved. Consequently, the application fails and is denied,” Justice Sifuna said.
In their application, Bienvenue Delta Hotel and Bins Management Services Ltd argued that they were distinct entities with their own legal identities, separate from their directors and shareholders.
In an affidavit, Waititu stated that the High Court’s order from last year redirected the income, which was allegedly being used to service a Kes.200 million loan taken to acquire the property. The court was informed that the property had been mortgaged to Equity Bank as collateral for the loan.
“The receiver’s appointment to manage the applicant’s affairs effectively reduces the applicant’s income, as section 56A (8) stipulates that the receiver’s costs shall be deducted from the applicant’s proceeds,” he said in the application.
The politician further argued that the income might decrease because the receiver might lack the enthusiasm and necessary expertise for business development and marketing, potentially preventing the hotel from meeting monthly loan payments, paying wages, and continuing operations, which would harm the shareholders.
Proceeds of Corruption
The Ethics and Anti-Corruption Commission (EACC) opposed the application, asserting that the assets had been acquired through corrupt conduct and were subject to forfeiture.
According to the EACC, Waititu and his wife Susan Wangari acquired the assets between 2015 and 2020 when he was the MP for Kabete Constituency and later Kiambu Governor. Represented by lawyer Jacky Kigogy, the EACC argued that the assets should remain frozen until the case is concluded or Waititu proves they were not acquired through corruption.
In the ruling, Justice Sifuna stated that any variation or discharge of court orders should only occur in the most exceptional, extraordinary, and deserving circumstances.
The judge emphasized that when court orders are issued based solely on suspicion, their duration should not be extended unnecessarily, as there is no finding of wrongdoing yet.
He directed that the case be heard and determined within 60 days of the ruling.
