Tourism Cabinet Secretary Alfred Mutua is confronting a legal challenge as an investor has taken him to court, demanding payment of Sh60 million for purportedly purchasing shares in a Lavington hotel.
In a petition submitted to the High Court, Ubhi Ripthuman Sigh claimed that on October 6, 2022, he entered into an agreement with CS Mutua to sell 15 shares of Brazilian Rodizio Limited, a hotel, for the aforementioned sum.
According to Sigh, the agreement stipulated that the amount be transferred to a joint account under the names of their respective legal representatives within 30 days, a condition that allegedly went unmet. Moreover, Sigh asserted that it was agreed that the company’s directors would convene to authorize the transaction and for him to transfer his legal ownership of the shares to Mutua.
Sigh’s lawsuit lists CS Alfred Mutua, co-director Emily Chebey Loroupe, and the hotel as respondents. He further stated that the proposed meeting regarding the transaction also failed to take place.
In his pursuit of the claimed funds, Sigh disclosed that he wrote to Mutua on June 28, 2023, making a formal demand for payment, which he alleged went unanswered.
Sigh contended that subsequent to acquiring the 15 shares, former governor Mutua became a registered director and majority shareholder of the company. Despite his co-director status, Sigh claimed he had been marginalized in decision-making, management, and daily operations of the company, despite repeated requests for information.
Sigh expressed concerns about potential mismanagement of the company, which could leave him liable to third parties and stakeholders.
He told the court that he recently discovered various dealings and transactions within the company’s accounts at the NCBA bank’s Lavington Branch, which he had neither approved nor been the authorized signatory.
Furthermore, Sigh alleged that his requests for copies of various company documents related to the Financial Year 2022/23 had been disregarded by the respondents.
“In the circumstances, it has therefore become necessary and urgent to seek this court’s intervention to protect the applicant (Sigh) from being subjected to further prejudice by the respondents pending the hearing and the determination of the application herein inter-parties as well as the main suit,” the petition stated.
Pending the court’s decision, Sigh is seeking a restraining order preventing the co-directors from accessing, transferring, or handling the funds held in the three accounts under the hotel’s name. Additionally, he is requesting Mutua and Loroupe to supply him with copies of the hotel’s audited accounts and income tax return for 2022, financial statements, income statement, cash flow statement for FY 2022/23, debtors and creditors reports, bank reconciliation reports, and directors’ accounts, among other documents.
Before selling the 15 shares to Mutua, Sigh stated that he possessed a 30 percent stake in the company, having acquired the percentage from Loroupe for Sh30 million on March 9, 2022.
