Wednesday, May 25, 2011

Cabinet minister Dalmas faces bankruptcy

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Share/Save/Bookmark The High Court in Nairobi has issued a bankruptcy notice against Public Service Minister Dalmas Otieno for failing to pay a 12.7 million debt.
The notice was issued on Thursday last week after Otieno failed to settle the debt owed to Twiga Motors Limited following a court ruling in 2009.
He has been given seven days following the service of the notice to pay the debt or enter a counter claim failure which the bankruptcy proceedings will be instituted. “Take notice that the consequences of not complying with the requisitions of this notice are that you will have committed an act of bankruptcy, on which bankruptcy proceedings maybe taken against you,” read the notice signed by the deputy high court registrar.
Twiga Motors moved to court after the minister failed to pay the debt in spite of various promissory notes. Twiga Motors initially sought Sh30.7 million from the Sh12.7 million original debt of 2002.
However in her ruling on the 26 October 2009, Justice Joyce Khaminwa ruled that the minister should pay Sh12,705,095, which he had acknowledged to owe.
Twiga motors had filed to be awarded Sh30,734,316 based on 16.3 per cent annual interest rate but the court ordered for payment of the initial debt of Sh12,705,095.
 Otieno through his Tasley Consultants, where he is a chairman, and Twiga motors entered a deal to acquire trucks and cars from the motor dealer but he failed to honour his part of the bargain.
Since then, in letters and correspondences filed in court, Otieno committed himself to clear the debt by continuous seeking extension of time.
In such a letter, the minister sought three months on December 2002 saying he needed time since he was vying the Rongo parliamentary seat on a Kanu ticket.
On 21 October 2010, Twiga motors moved to court and secured a preliminary decree requiring the public service minister to pay the amount.

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