Mediheal Hospital woes deepen as auctioneers attach property

The troubles facing Mediheal Hospital have deepened after auctioneers raided the facility in Nakuru County and attached property. 

Auctioneers on Wednesday seized nine vehicles and other properties over Sh40 million debt owed to 18 doctors.

John Ngunjiri of Tango Auctioneers said he was executing a legal auction, following court orders over the accrued salaries.

Mr Ngunjiri confirmed they seized nine vehicles, printers, computers, medical equipment, electronics, and furniture among other movable items that will be auctioned.

.

Keep Reading business

•  Scientists root for genome editing to boost food security
•  TVETs to get Sh49 million funding for tech training
•  Amsons' bid for Bamburi Cement gets Comesa approval
•  Co-op Bank third-quarter profit jumps to Sh19b on higher income
•  I am not about to retire, Equity's James Mwangi says Premium

“So far, the items we have seized will cover at most Sh5 million. We intend to report to the court to allow us to auction immovables, including land,” he said.

Ngunjiri said they will advertise the items for sale if the hospital raises no objection.

The hospital is linked to former Kesses MP Swarup Mishra.

The doctors, led by Dr Benard Gwer, moved to court on February 7, this year, claiming Sh53 million salary arrears plus interest.

The hospital, however, admitted to Sh40 million debt, but contested the extra Sh13 million.

Mishra claimed the application was full of outright untruths and assumptions meant to purely mislead the court.

However, on April 30, this year, Justice Heston Nyaga ordered the hospital to pay the debt it had admitted to.

Nyaga ruled that it was not disputed that the hospital engaged the doctors as professional consultants.

“It is also uncontested that the respondent (Mediheal) has not paid the applicants (doctors) for services they rendered,” ruled Nyaga.

He noted that the hospital failed to honour a November 11, 2023, agreement with the doctors.

In the consent, Mediheal agreed to pay the Sh40 million within five months.

Nyaga agreed with the doctors that there was fear of default because five months had lapsed and nothing significant had been done.

He ordered the hospital to provide security for the admitted sum, either in cash or other acceptable form, or else the doctors will be at liberty to proceed to levy attachment on the hospital’s assets.

When the hospital failed to pay, the doctors went back to court and sought a warrant of attachment against the hospital.

The warrant was issued on June 4 after a 15-day notice.

The auction is a blow to health services in Nakuru, following the closure of War Memorial Hospital in January, over land dispute.

According to patients and doctors, the two facilities were among the major private hospitals in the county.

In a social media comment, the politician termed the move as a political witch-hunt insisting that he would overcome it.