, NAIROBI, Kenya, Dec 1 – The High Court has been urged to allow the Director of Public Prosecutions and the police to investigate an alleged Sh577 million fraud.
Synergy Industrial Credit Limited wants the High Court to give Keriako Tobiko and the Criminal Investigations Department permission to carry out a probe involving 14 sale agreements arising from the purchase of a building located within Riverside Drive.
Justice Mohammed Warsame was told that police should be given the green light to investigate Cape Holdings which allegedly obtained the Sh577 million from Synergy Ltd by false pretenses.
A director of the company Vipul Shah avers that Cape Holdings is not immune to the process of criminal justice and urged the court to allow the DPP and police do their work.
Synergy’s application was supported by a State Counsel who argued that although the matter is purely civil, police cannot be barred from investigating a complaint brought to them.
“The court should allow police to continue investigating the matter to enable the DPP make an appropriate decision. The application by Cape Holdings is preempting the investigations and outcome of the same,’’ argued Lilian Obuo.
Cape holdings is said to have denied it was paid the said amount before the contract was entered into by the two companies.
However, Cape holdings wants the court to dismiss the complaints raised by Synergy claiming the money it purportedly obtained by false pretences was paid under an agreement which was terminated by the complainant.
Lawyer Chacha Odera submitted that Synergy ltd has failed to disclose that the matter is pending for arbitration.
He maintained it is not open for police to get into the matter which is purely civil because a caveat on the disputed property known as Synergy Square has already been issued.
“This matter is not open for police to investigate and prosecute the applicant as invited by the complainant,’’ he pleaded.
“The DPP will also be acting in excess of his constitutional and statutory powers in initiating criminal prosecution in a purely civil matter’’ added Odera.
The court heard the issue for determination in the arbitration matter is whether Synergy ltd is entitled to a refund of Sh277 million paid under the subject agreements.