Bank official says they did not give Tuju Sh294 million

A senior East Africa Development Bank (EADB) manager was hard-pressed to explain why the lender did not disburse some Sh294 million that was supposed to be part of the Sh1.9 billion loan to former minister Raphael Tuju.

At a hearing before Commercial Court Judge Alfred Mabeya, EADB official David Washington Barnabas Odongo told the court that the money was not disbursed as agreed.

In the case, the former minister argues that the lender reneged on adding the amount to develop 30 three-bedroom senior resident units at Tree Lane and another 85 maisonettes on a nearby seven-acre land on Mwitu Road in a bid to enable Dari Limited (Tuju’s company) to repay the Sh1.9 billion loan.

Odongo said he did not know why the bank did not release the money. According to him, the amount was not in a separate proposal.

“The money was not sent. I cannot explain why it was not disbursed since I was not in senior management.  Conditions were to be met to release the money, but I did not know what happened,” testified Odongo.

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He stated that upon request, DCI supplied him with the statements, and after analysis, Tuju discovered that Odongo had allegedly given the police a differing narration from what he told the court.

“Replying affidavit dated November 17, 2023, filed on behalf of the plaintiff herein (EADB) contains factual statements that are not only dissimilar to the ones made in his replying affidavit made before this honourable court,” argued Tuju.

Tuju claimed that Odongo had recanted his statement in support of the bank’s case against him.

Further, Tuju said that the manager admitted that developing real estate was a key component of the project to enable Dari Limited to repay the loan.

He claimed that the bank had been cautioned against developing the Mwitu facility as it was allegedly a matrimonial property.

The manager said the first phase of the deal was completed but the second one did not progress.

Tuju also alleged that Odongo also told the police that, in most cases, he would visit the bank’s lawyers and find an affidavit already prepared for him to sign.

“The excerpt reproduced confirms to this honourable court that the replying affidavit filed in response to the applicant’s application dated November 8, 2023, is not an accurate representation of events as per one David Odongo,” claimed Tuju.

Odongo, on his end, told the court that the affidavits were drafted for him, and the lawyer would explain the purpose, and he would sign in good faith.

He stated that he was not asked about the money, and in his first statement, there was no mention of Sh294 million.

The witness told the court that he was not aware of a loan facility by the Bank of Africa.

At the heart of the case is whether a United Kingdom judgment in favour of EADB can be recognised and enforced in Kenya.

Tuju is fighting to block receiver managers from his Dari Coffee Garden while also shaking off a bankruptcy suit brought against him and his three children.

The court will rule on the issue on September 18, 2024.