Wednesday, April 24, 2024

Raila’s company faces auction over debt

Raila’s Businesses: Spectre International Limited which is associated with Raila Odinga has been directed by a Mombasa court magistrate Francis Kyambia to pay Betric Kenya Limited Sh. 7.7 million for goods supplied back in 2016, failure to which the money will be recovered yhrough auctioning. The court has also ordered the company to pay for the cost of the suit which was filed in 2017.

In court, Betric Kenya, which sued the Raila firm, said it delivered the required product totaling to 14,500 liters of the requested oil. They said they made the delivered the suppliers on two batches. Spectre however failed to meet their end of the deal after they failed to pay for the goods within the stipulated period.

According to Betric, they had agreed to have the payments totaling to sh 8,089,422 within 3 days. “However, the defendant made some payments leaving a balance of sh 7, 739, 422,” the company said.

According to Betric Company, between May and June 2016, Raila’s company took the company profile and later made an order for supply of fuel oil (HFO) through LPOs dated on diverse dates between June and July 2016.

Betric Kenya’s lawyer Wameyo Onyango said that after Spectre International asked to be supplied with the oil, it was expressly agreed that it would pay up within 30 days.

“The total amount payable in respect thereof being Sh. 8 million, the defendant has made some payments leaving a balance of Sh. 7.3 million,” the company said in court papers.

Betric Kenya’s directors argue that in order to finance the transaction, it had borrowed money at an interest of five percent that has been accruing on a monthly basis since 2016.

“The plaintiff avers that it has severally written to the defendant demanding the immediate payment of the outstanding accruements.

“But the defendant, in spite of repeated promises, has failed to pay hence this suit,” the company said.

In a verifying affidavit, Betric Kenya director Beatrice Aoko said the company has been unable to repay the loan it took to procure the goods and deliver them to Kisumu due to non-payment by the defendant.

“The plaintiff’s claim against the defendant is for Sh. 7.7 million, being the amount payable on account of the fuel delivered to the defendant and accrued interest now payable by reason of the delay in loan payment, which delay has solely been caused by the defendant,” the company said.

The court had on October 4 last year granted Betric Kenya leave to effect service of court summons by means of an advertisement in local dailies for Spectre to enter appearance within 30 days; but Spectre failed to do so.

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