Story: Battle looms over billion-shilling properties
Source: http://www.nation.co.ke/news/Daniel-Moi-Nicholas-Biwott-Dispute-Assets/-/1056/2436052/-/uowh1j/-/index.html
Kanu-era Cabinet minister Nicholas Biwott (centre), is at the centre of the dispute.
A vicious battle for control of billions
of shillings in assets linked to former President Daniel arap Moi and
Kanu-era Cabient minister Nicholas Biwott is taking shape.
Lawyers
representing Mr Moi and Mr Biwott wrote to a company associated with
one of their key allies demanding the return of property in Nairobi
allegedly held on behalf of the pair.
In what sources
familiar with the intrigue say could be a wider scheme to reclaim
property previously held in trust by associates of Mr Moi and Mr Biwott,
there are fears the dispute could end up in court and partly expose the
extent of the wealth of the two individuals.
However,
it is not clear why the two men have chosen to engage in legal battles
at this moment in time. People close to their families say perhaps those
who stand to inherit the property would like it to revert to the
principals from the nominees who were entrusted with it.
In
a letter dated June 16, 2014, Kipkenda and Company Advocates —
representing Mr Moi and Mr Biwott — asked the lawyers of Belgo Holdings
Ltd to return two unidentified prime properties in Nairobi worth
millions of shillings that they have allegedly been holding in trust.
TRUSTED ALLY
In
an interesting turn of events, one of the letters reveals that Belgo
Holdings is associated with Mr Joshua Kulei, Mr Moi’s former private
secretary and one of his most trusted allies.
“Our
clients are currently reconstituting trustees of their various
investments. As the owners of the companies and the properties where
your roles are restricted to trusteeship, our clients had verbally
indicated to you that they require all titles to the trust properties
held by you returned to them,” write the lawyers.
The
letter traces the genesis of the ownership to 1980, when individuals
associated with a company that was later registered as Belgo Holdings,
were allegedly asked to incorporate Lakeview Developments Ltd as the
nominees and trustees of Mr Moi and Mr Biwott for the two properties.
But
Belgo Holdings, whose shareholders are listed as Akber Abdullah Kassam
Esmail and Shirin Esmail, is accused of transferring the property to
itself and shunting the interests of Mr Moi and Mr Biwott.
SWIFT REJOINDER
However,
in a swift rejoinder dated June 20, 2014, Esmail and Esmail Advocates,
lawyers for Belgo Holdings, “categorically deny” that Mr Moi and Mr
Biwott have any claim to the properties.
They allege
that the only share previously held in Lakeview was in the hands of Mr
Gad Zeevi — an Israeli billionaire known to be a long-time business
associate of Mr Biwott, particularly through the HZ Group of Companies.
The
Belgo Holdings lawyers alleged this was the third time in the last two
years that representatives of Mr Moi and Mr Biwott had made “baseless”
claims of ownership of the two prime properties.
The
letter alleges that the only instructions received for Lakeview to be
incorporated were from Mr Zeevi and Mr James Mugoya Isabriye, a Ugandan
associated with Mugoya Construction Company, which won major tenders
during the Moi era.
But in a twist that draws Mr Kulei
into the saga, the lawyers claim one of Belgo Holdings's directors, Mrs
S. Esmail, is a nominee of Mr Kulei.
The lawyers
further reject allegations that all properties in Kenya belonging to Mr
Zeevi were assets of HZ Group and hence belonged to Mr Biwott.
COMPLEX TRANSACTIONS
The
letter details various complex transactions in the exchange of
ownership of the property between 1980 and 1995 to supposedly prove Mr
Moi and Mr Biwott had no claim.
“Your clients have no
connection whatsoever with Belgo and the properties do not and never
belonged to them, either directly or indirectly. They have no right to
ask for the documents mentioned in your letter, which are in possession
of Belgo. Any legal action against us or Belgo will be defended most
vigorously,” the letter says.
The exchange of letters
provides further insights into the business dealings of Mr Biwott. In a
June 30 letter, Kipkenda and Company Advocates affirm that Mr Zeevi and
Mr Biwott previously owned various companies on a 50:50 basis.
But
the Israeli billionaire allegedly relinquished all his interests in
Kenya to Mr Biwott in 1991 while the Kenyan politician took over all
jointly owned foreign assets.
According to Mr Moi’s and
Mr Biwott’s lawyers, the two properties in dispute were part of those
transferred from Mr Zeevi. “The purported sale and purchase of the
properties by you and J.C. Kulei is, in our clients’ view, an
unmitigated act of fraud perpetrated by persons who were their trustees
and/or nominees.”
FORCE OF LAW
The
lawyers continue: “This attempt to dispossess our clients’ properties
will face the full force of the law in very due course.”
But
in response, the Belgo Holdings lawyers allege that Lakeview — which
was associated with Mr Zeevi and which partly owned the properties in
dispute — was not part of the Kenyan assets transferred to Mr Biwott.
“The
properties never belonged to your clients nor can trusts be created on
the mere say so of your clients. We do not have a problem to face the
‘full force of the law’ as the truth will always prevail; especially
when it is backed by irrefutable documentary proof,” the Belgo lawyers
write.
Sources familiar with the ongoing battle say
that apart from the efforts to secure the two properties, there may be
other assets linked to Mr Moi and Mr Biwott in dispute.
Mr
Moi, who is celebrating his 90th birthday on Tuesday, ruled Kenya for
24 years and is said to be one of the wealthiest individuals in the
country, with business interests straddling the financial sector, media,
real estate and farming.
The Kroll report,
commissioned by the Narc administration in 2003, alleged he owned some
of his properties in partnership with Mr Kulei and Mr Biwott,
among others.
The ownership dispute, should it find its way into court, could be the most epic in Kenya’s history.
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