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businessWhy Firm want court to declare Cooperative bank CEO Gideon Muriuki unfit...

Why Firm want court to declare Cooperative bank CEO Gideon Muriuki unfit to hold any public office

According to Kenyamiror, cooperative bank CEO Gideon Muriuki may be ousted from office or face serious legal hurdles after a manufacturer of plant health products accused him  violating and ignoring court orders and are now seeking help from court to declare him unfit to hold a public office.

Orion East Africa ltd says in the application that Muriuki has refused to comply with a court directive requiring him to present himself to court for cross examination over an order.

The supplier of chemicals further says Muriuki has never bothered to offer any explanation for his refusal to comply with lawful court orders.

For that matter, the Co-op bank CEO should be found guilty of gross misconduct, insufferable bullying of state officers and violation of valid Court orders and, therefore, unfit to hold the office of the CEO or to serve in any listed company or public entity in Kenya.

The company says the acts of refusal causes systemic risks to the lender.

The firm further accuses Muriuki of causing monumental losses of 35% stock shares belonging to the cooperative movement in Kenya during a shambolic Initial Public Offering (IPO) in 2007/2008 to gain unjust enrichment for himself and cronies.

“An order allowing Orion East Africa Ltd to hire or acquire the services of a registered Certified Financial Analyst to carry out a detailed forensic audit, verification and valuation of the movements of 34,816,200 stock shares from 2002 belonging to Orion East Africa Ltd using Chart GPT 4 or any other suitable Fintech Artificial Intelligence (AI) software application,” seeks the company.

The firm’s chairman Ruo Maina, says that on 26 October 2001, the company made an application for execution of its decree and attachment of shares, retained earnings, and accrued dividends under order 22 Rule 1 & 10 attachment of debts, of the repealed civil procedure rule.

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He further states that pursuant to the application, the court issued an order on December 4, 2001 for the attachment and sale of shares from the date of filing the suit until full payment, together with the costs of garnishee proceedings.

“These were shares held by the garnishee bank, the Co-operative Bank of Kenya, in the account of the Judgement debtor, Tetu Coffee Growers Co-operative Society Limited, (in liquidation), annexed hereto and marked,” says the company chairman.

He further states that their advocate Mugo Kamau & Company advocates later obtained a court order for the cross examination of Dr. Muriuki in relation to the suit but it.

The order, he says, was never complied with, nor did he ever present himself to court for cross examination and neither has he ever offered any explanation for his refusal to comply with lawful court orders.

Orion East Africa further seeks for an order directing Co-operative Bank (Garnishees) Share Registrar, Kingdom Securities Limited, to set up and deposit in court for their collection, a Central Depository System (CDS) account for 34,816,200 stock shares in the Co-operative Bank since 2008 IPO.

The company further wants the court to issue an order prohibiting the Bank and Dr. Muriuki from trading or transferring the judgment stock shares acquired by Orion East Africa Ltd in the Co-operative Bank amounting to 34,816,200 stock shares as at 31 December 2002 and to issue through Kingdom Securities Limited a CDS stock share account for the same accordingly.

In the court documents, the company wants the court to rule that our 34,816,200 stock shares are adequate to qualify Orion East Africa Ltd directors for eligibility to sit in the Board of directors of the Co-operative Board of Kenya and its Affiliates with immediate effect.

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The company wants Muriuki the Groups Managing Director of the Garnishee Bank be cited for perjury, unethical business practice and killing democracy through state capture, paralysis, bullying and intimidating government officers and his wealth so acquired illegally, be declared as proceeds of crime.

Orion East Africa Ltd further seeks for an order instructing the following financial regulators Central Bank of Kenya (CBK), Advocates Complaints Commission, Judicial Service Commission, EACC, DCI, CMA who have been procrastinating with investigations against Dr. Muriuki be ordered to timeously conclude their lethargic investigations and immediately make recommendations towards the loss or vaporization of 34,816,200 stock shares belonging to Orion East Africa Limited in the Co-operative Bank of Kenya Ltd.

According to his affidavit, the order for attachment and sale of stock shares held by the bank was made with the willing consent of the TETU Coffee Growers co-operative society ltd (in liquidation) and Mugama Farmers co-operative union ltd (both defendant) and the Co-operative Bank (garnishee) and that for good measure,.

“we pray that the court grant us permission to engage professional expert services in the following technical areas to calculate the movement of the decreed 34,816,200 stock shares, swaps, quantities, interest, value, prices, changes, and appreciation through time and market dynamics,” he says.

His affidavit further state that since the court decree orders were issued in 2002, we have endeavored to have the garnishee bank facilitate the sale of the shares to satisfy the decree, to no avail, and hence were compelled to take advantage of the contra entry doctrinal commonly practiced by limited liability companies to balance books of account for the purpose of tax and regulatory compliance.

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“There is compelling legal requirement that we obtain prohibitory orders under order 22 Rule 40 (1) to actualize the contents of the consent order. We believe that the best course of action is for the court to order the attachment of the shares and all dividends on a written order prohibiting the garnishee Bank and its Group Managing Director, in whose Bank the shares are standing, from transferring the same shares and accrued dividends to any other entity,” says the chairman.

He adds that the cases were brought to court within legal timelines and what is holding back the matter is the recovery of our dues, as the matters are still alive and all what remains now is enforcement, which is a procedural rather than a substantive matter of the law.

In a letter dated 15 July 2009, the Commissioner of Co-operatives requested removal of a caveat placed on the shares of Tetu Farmers by Orion East Africa Ltd, ostensibly to sell the said stock share for the purpose of settling Orion East Africa Limited’s claim.

Orion East Africa Ltd never emptied the caveat, yet Dr Muriuki proceeded to transact in the 9,276,200 stock shares in an illegal insider trading scheme which stocks were previously in the name of Tetu Coffee Growers Co-op. Soc. In Receivership, in complete and deliberate contravention/ violation of the existing terms on the caveat imposed by court on the same stock shares.



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