Chosen Builders Investments Limited, of which David Kariuki Ngari is the director, sold a 50-acre property in Murang’a county by forcible takeover to the government but refused to process the title deed, despite the full amount in January 2018 Col Alice Mate, director of the Asset Recovery Agency (ARA), appeared Monday before the Public Accounts Committee (PAC) The Directorate of Criminal Investigations (DCI) had received established that Ekeza Sacco Society Limited, Gakuyo Real Estate Limited and Chosen Builders Investments Limited are associated with Mr. Ngari.
Ms. Hannah Wachu Kariuki is also co-director with Mr. Gakuyo on the two companions ies .
Col Mate informed the committee of the National Assembly, chaired by Ugunja MP Opiyo Wandayi, that Mr. Ngari has been the chairman of the Sacco and director of the two companies since its inception.
The Die Un The investigation came after 7,800 depositors from Ekeza Sacco Society Limited filed complaints with the DCI of fraud, theft and misappropriation of their Sh 1.05 billion investments The DCI invested Sacco in the expectation that it would be a loan advance or property. However, they complained that they did not get what they were promised, ”Ms. Mate told the committee. Committee members Joseph Ngugi (Gatanga) and Eve Obara (Kasipul Kabondo) questioned whether the National Land Commission (NLC) was aware that the Family Bank’s land had been encumbered.
“How diligent is NLC the acquisition of the land? ”Mr. Ngugi wondered.
He claimed the” acquisition “was designed to defraud the government.
Sh135.47 million was given to the company Paid in two tranches via an account at Family Bank
The first payment of Sh 53 million was received in April 2017 and the second payment of Sh 82.47 million was received on December 15, 2017 January 2018 a.
However, the transaction was marked by Auditor-General Nancy Gathungu in a special audit of the NLC accounts.
The audit included the mandatory acquisitions of the NLC on behalf of the others Government agencies for the period 2014/15 to 2016/17.
The Auditor-General’s attention was drawn to the fact that despite the full payment of the land to the government by January 2018, the government had not yet received the title deed.
The Monitoring Committee considering that passed the special audit and learned that on April 30, 2015, Chosen Builders Investments Limited received a Sh408 million credit facility from Family Bank to purchase 300 hectares of land – LR No. Mitubiri / Wem pa Block 1 / 6824 using the same property as collateral.
The 50 acre property, which has been paid for in full by the government, is part of this property which means that its subdivision cannot be made until the loan is repaid.
The committee heard that one of the company’s directors auctioned some of its properties, including the 300-acre property, in January 2019.
On February 14, 2019, the cooperative received On the instructions of the Cabinet Secretary for Trade, Industry and Cooperatives, issar issued a court order to stop the intended sale by auction.
At this point, the cooperative commissioner was investigating the directors of Ekeza Sacco for complaints from its members.
The cooperative commissioner’s move was compounded by Ara’s restriction of land trade on April 15, 2019 pending investigation.
The committee also heard that the NLC assessment has stopped Not signed or dated on the land prior to acquisition.
Interestingly, the va luation claiming the land belongs to the company has since disappeared from the Commission’s offices in the Ardhi House in Nairobi.
Mr Ngari was one of the people expected to appear before the committee on Monday to shed light on the matter, but he did not appear.
The reasons for his absence were dismissed as weak by Mr Wandayi.
Rebecca Mbithi, CEO of the family bank, had also been summoned, but she dispatched company secretary Eric Murai, who had a hard time convincing MPs to that the bank was not connected to Mr. Ngari’s activities.
This despite the fact that all of Mr. Ngari’s companies have accounts with the Family Bank.
The committee called on Mr. Ngari and Ms. Mbithi to appear before him as Mr. Murai failed to explain why it was so easy for the bank to extend a credit facility of this magnitude to a company that had little banking history with the lender.
” How long have you had a relationship with selected Builders Investments Limited as a client and how much did the company hold before applying for the credit facility? “Mr. Wandayi inquired.
Mr. Murai said the company first opened an account with the bank in 2015.
This means the company had been a customer for barely a year before it received an account loan.
“The bank had no reason to doubt the credibility of the borrower. We did the due diligence, ”Murai told the committee.
However, he did not disclose the amount the company had in its accounts before applying for the loan Obara was not satisfied.
“The owner borrowed to buy land and used the same land as security! How is that possible? “She posed.