NIC Bank raises objection to Buzeki enterprise auction, files Sh2.7bn claim

July 16, 2019 5:33 pm
NIC on Tuesday provided a list of 289 trucks and 141 trailers which are the subject of the auction saying Buzeki’s business was indebted to it to the tune of Sh2.7 billion having entered into debentures between 2006 and 2016/FILE – COURTESY

, NAIROBI, Kenya, Jul 16 – The NIC Bank has moved to court challenging an impending auction of Buzeki Enterprises Ltd, a logistics company owned by Bundotich Zedekiah Kiprop – an entrepreneur cum politician who unsuccessfully ran for the Uasin Gishu governorship in 2017 .

Assets of the firm owned by the businessman popularly known as Buzeki are set to be auctioned to recover a Sh188.6 million debt.

NIC on Tuesday provided a list of 289 trucks and 141 trailers which are the subject of the auction saying Buzeki’s business was indebted to it to the tune of Sh2.7 billion having entered into debentures between 2006 and 2016.

“The bank (Objector) was unaware of the fact that Moran Auctioneers had proclaimed 53 trucks and trailers, the subject of the debentures. The Objector only learnt of this fact on June 24, 2019,” NIC stated in court papers.

The bank wants Moran Auctioneers stopped from disposing the assets to recover a Sh188.6 million debt owed to Landmark Port Conveyors Ltd pending determination of a suit it has filed.

Landmark Port Conveyors obtained warrants of attachment and sale of movable property, and the orders are valid until July 18, 2019.

NIC argued Landmark Port Conveyors and the auctioneer acted contrary to the assurance they gave to the court that they would not attach any asset which are subject to a debenture as long as the list is provided.

Buzeki Enterprises Ltd stated that Moran Auctioneers have failed to comply with the Auctioneers Act and Rules, and that their action is therefore unlawful.

Further, the logistics firm argued the company will suffer loss of business with the seizure and continued detention of its vehicles, hence the need to have them released.

Buzeki Enterprises Ltd argued that the case it had filed may also be prejudiced should the vehicles be auctioned before a determination is made by court.

However, Landmark Port Conveyors termed the application seeking to stop the auction as merely a delay tactic.

Further, Landmark Port Conveyors stated that the magnitude of Buzeki Enterprises Ltd’s indebtedness to the bank is a non-issue.

“We are only concerned about the monies owed to us by Buzeki Enterprises Ltd,” Landmark Port Conveyors said.

The case will be mentioned on July 24.

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