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Kalonzo Foundation sues NGOs Board over account freeze

What you need to know:

  • Through lawyer Albert Simiyu Murambi, the Foundation is protesting against a May 2 directive that saw their accounts at Investment & Mortgages (I&M) bank frozen.
  • According to Mr Kennedy Musyoka, the Wiper Democratic Movement Party leader Kalonzo Musyoka’s son, the Foundation has been in operation since 2005 and is currently paying school fees for 23 students.
  • Mr Musyoka, who is also a trustee in the Foundation, claimed that they responded to the Board on April 10 but they had their accounts frozen as of May 2 for failing to account for Sh196 million.

The Kalonzo Musyoka Foundation has dragged the Non-Governmental Organisations Coordination Board to court for freezing its bank accounts.

Through lawyer Albert Simiyu Murambi, the Foundation is protesting against a May 2 directive that saw their accounts at Investment & Mortgages (I&M) bank frozen.

In a suit filed on Monday, the Foundation claimed that there were no reasons given to back up the move, hence it was unlawful.

The Foundation also claims that the directive adversely affects their philanthropic activities country wide, their beneficiaries and daily operations.

“Unless this matter is heard urgently and corrective orders issued, irreparable harm and injury will continue to be visited on innocent beneficiaries of this programme,” said Mr Murambi.

23 STUDENTS

According to Mr Kennedy Musyoka, the Wiper Democratic Movement Party leader Kalonzo Musyoka’s son, the Foundation has been in operation since 2005 and is currently paying school fees for 23 students.

In his case documents, Mr Musyoka claimed that the Foundation has consistently filed its returns with the Board.

He was responding to allegations by the Board through its Executive director Fazul Mahammed, issued in a letter dated March 1, that the Foundation was operating an illegal and unauthorised account at I&M bank, Ngong Avenue branch.

The Board had also accused the Foundation of operating a secret as well as illegal foreign currency account and that their accounts do not reveal identity of its donors.

Following these allegations, the Board had given the foundation only 14 days from the date the allegations were communicated to identify their bank accounts, avail certified statements as well as funding agreements of both foreign and local donors.

CONDUCT IRRATIONAL

Mr Musyoka, who is also a trustee in the Foundation, claimed that they responded to the Board on April 10 but they had their accounts frozen as of May 2 for failing to account for Sh196 million.

In the said letter, the Board had asked Central Bank to have the foundation’s accounts frozen ‘until further notice’.

“I verily believe to be true that the Board’s conduct is irrational as three weeks before the impugned decision, it had certified the Foundation as compliant with the law in all respects, this is in breach of all rules of natural justice,” said Mr Musyoka.

He alleged that the decision to have the accounts frozen is malicious and has consequently caused the Foundation’s activities to remain in a state of limbo.

They therefore want the court to issue temporary orders stopping the freezing directive as well as continued harassment and intimidation on its officers under pretext of investigations.

They also want the Board barred from deregistering them and infringing on their rights besides the court quashing the directive to freeze bank accounts.