The High Court has blocked a case in which Postel Housing Co-operative Society Ltd is seeking to privately prosecute current and former directors of Telkom Kenya over 60-acre land deal brokered in 1993.
The Postel Sacco moved to court on the grounds that Telkom sold the land to a third party in 2011 despite the property having been transferred to Postel in 1993.
The High Court blocked the planned private prosecution of Telkom’s CEO Mugo Kibati and six officials, over the disputed Kshs.14Billion parcel of land on Nairobi’s Ngong Road, on the ground that there was a pending the hearing and determination of the suit.. Accordingly, the Judge allowed the conservatory order restraining the intended private prosecution of the petitioners herein which had been sort by Telkom defence lawyer.
Telkom moved to court to challenge the criminal charges against its directors arguing that the case was an abuse of the court process, given that the same matter was pending before the commercial division of the High Court. Also questioned was why officials of the Cooperative society waited for more than 28 years to institute the charges. In contention too is that the criminal proceedings initiated by Postel is targeting executives and directors who were not in the telco when the land deal was brokered in 1993.
Further, the telco lawyer argued that the criminal charges against its directors was an abuse of the court process, given that the same matter was pending before the Commercial Division of the High Court.
The Judge directed the parties to appear before him on January 24, for highlighting of submissions filed.
A Senior Principal Magistrate had on October 8 allowed officials of the society to privately prosecute the former and current directors on the grounds that they sold the land to a third party in 2011 despite the property having been transferred to Postel in 1993.