By PAMELA CHEPKEMEI pjepkemei@ke.nationmedia.com
Posted Tuesday, August 9 2011 at 22:00
Posted Tuesday, August 9 2011 at 22:00
In Summary
- Trader claims MP has ignored written and verbal demands to pay the money
Two more debt cases have been filed against Garsen MP Danson Mungatana.
In the first case, a businessman has sued the MP because a car he sold him has been seized by Equity Bank over a Sh5.6 million debt. Another trader is claiming Sh2.8 million from him.
The cases came before High Court judge David Maraga on Tuesday.
Mr David Mahugu claims he bought a Range Rover KBG 496K from Mr Mungatana through Murang’a Road Motomart Ltd at Sh3.8 million last November.
He paid a deposit of Sh1.5 million on the day he signed the sale agreement, but the motor dealer has refused to accept the balance.
Mr Mahugu’s lawyer Hiram Kago told the court that the car had been seized unlawfully by Antique Auctions Ltd on Equity Bank’s orders.
He said the businessman feared the auctioneer would dispose of it to recover cash the MP owes the bank.
Mr Mahugu is seeking a court order stopping the auctioneer and the bank from disposing of the car until the case is heard.
Hearing starts on Thursday.
In the other case, Mr Francis Mburu claims that the MP has failed to repay a Sh4.2 million loan. He wants the court to enter judgment and order Mr Mungatana to pay him Sh4.2 million with interest.
Mr Mburu claims that Mr Mungatana has ignored written and verbal demands to pay the money.
The lawyer acting for Mr Mburu had yesterday applied for permission to notify Mr Mungatana through a newspaper advert, but the application was withdrawn after a lawyer entered appearance for the MP.
Last month an arrest warrant was issued after the MP issued dud cheques to a businessman.
However, the High Court lifted the order.
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