French hotelier in Sh500m payout row fights Linturi bid to block it
A section of the Leopard Rock Lodge which was located at the Meru National Park before the owner was evicted. A French investor who won Sh500 million in compensation for being illegally evicted from the hotel has opposed a bid by Meru Senator Mithika Linturi to block the payment.
An investor who won Sh500 million in compensation for being illegally evicted from a hotel he had rented from Meru County has opposed a bid by Meru Senator Mithika Linturi to block the payment.
French national Michel Dechauffour said Mr Linturi is only playing politics with the suit as he did not know about its background, with the hotelier saying he suffered losses.
The High Court in Meru last month ordered the Meru County government to pay the money within 30 days.
In his suit, Mr Linturi alleges that making the payment would amount to rewarding “fraud, procurement malpractice and embezzlement” of public funds by county officials.
He alleges that the county treasury had not submitted to the county assembly information on the money demanded, a violation of Section 123 of the Public Finance Management Act.
Not budgeted for court award
Mr Linturi alleges that in further violation of the Act, the county executive had not budgeted for the court award, which attracts Sh2.2 million interest per month.
He has invited the Ethics and Anti-Corruption Commission to investigate Governor Kiraitu Murungi, Finance executive Titus Ntuchiu, Finance Chief Officer Kabii Chabari, and County Secretary Rufus Miriti for allegedly presiding over the loss.
But Mr Dechauffour has dismissed the claim, saying the county assembly was aware of the judgment against the devolved unit and the award to him for his eviction.
He said the assembly on November 9, 2020 invited him to a meeting of the Public Accounts and Investments Committee to shed light on the termination of the lease agreement.
Declined invitation
But he declined the invitation as there was a matter arising from the issue that was still pending in court and it could not be discussed in public.
An arbitrator had on December 19, 2019 found the county government liable for illegally evicting Leopard Rock Mico Limited, the owner of Leopard Rock Lodge, from the hotel and ordered it to pay Sh445,022,388.28.
The court heard that the award attracts Sh2.2 million in interest per month, which should be paid to Mr Dechauffour.
The 87-year-old investor has tabulated how he incurred the loss following the violent eviction.
Constant harassment
Through lawyer Peter Wanyama, Mr Dechauffour said he had faced constant harassment from the county government before he was forcibly ejected, allegedly without a court order.
The dispute started in 2015 when the former county administration issued a termination notice to Leopard Rock Mico Limited but it was not executed.
Another notice was issued by the current administration in 2018 before county officials forcibly took over the lodge in March 2019, leading to a court case.
Lease agreement
Leopard Rock Mico Limited had struck a lease agreement with the defunct Nyambene County Council for the development of the hotel in 2001 and 2008 and was to use the facilities until 2034.
Mr Dechauffour claims Governor Murungi had in August 2018 toured the lodge with Chinese investors, including mayor Liu Xiaohua of Huangshan, and told him to vacate the premises.
The Chinese delegation had expressed interest in investing in the hotel industry, especially in Meru National Park.
Justice Edward Muriithi will hear the matter from Monday (today).
