The Italian firm, CMC di Ravenna at the centre of multibillion dam scandal has landed in more trouble after failing to reimburse Ksh600 million borrowed from a local bank.
Justice Francis Tuiyott ordered CMC Di Ravenna to surrender all the 98 vehicles and equipment it had purchased for the construction of Arror and Kimwarer multi-purpose dams.
The judge also barred CMC Di Ravenna from transferring, selling or disposing its assets until a case by Barclays Bank of Kenya seeking to recover the loan is determined.
“The court issues an order directing the company to forthwith deliver all motor vehicles and equipment listed in the asset finance agreement with Barclays Bank to Casuarina Ltd for purposes of preservation pending determination of the dispute,” Justice Tuiyott ruled.
The Standard reported that Barclays argued it feared the company is about to go under before repaying Ksh595,655,552 million.
“Their insolvency case was admitted by the court in Italy which shows they are not in a position to settle the debt owed to the bank.
“They are likely to proceed and dispose off their assets without repaying the loan if let to go,” Lawyer Kamau Karoli mentioned.
According to court documents, the firm applied for the loan in April 2017 to purchase vehicles and other equipment.
On May 23, 2017, they executed an asset finance agreement through which CMC di Ravenna agreed to transfer ownership of the equipment to the bank until the loan is fully repaid.
The judgment spelled more doom for CMC di Ravenna which is at the heart of Ksh21 billion phantom dam projects.
